Carnival Corp Lowers Full Year Earnings Expectation

first_imgzoomIllustration; Source: Pixabay under CC0 Creative Commons license Miami-based cruise ship major Carnival Corporation & plc continued its financial growth in the third quarter of 2019, reporting record revenues and earnings.The company’s net income reached USD 1.8 billion, or USD 2.58 diluted EPS, for the three-month period, up from the USD 1.7 billion net income, or USD 2.41 diluted EPS, reported in the same quarter of 2018.Total revenues for the third quarter surged to USD 6.5 billion from the USD 5.8 billion in the prior year, while net cruise revenues ended up at USD 5 billion compared to USD 4.7 billion for the prior year, representing an increase of 5.3 percent.However, the company lowered its expected full year 2019 adjusted earnings per share that are now to be in the range of USD 4.23 to USD 4.27, reflecting recent fuel price increases, compared to June guidance of USD 4.25 to USD 4.35 and 2018 adjusted earnings per share of USD 4.26.“A further reduction in guidance for ticket and onboard revenue worth USD 0.06 per share in part contributed to by the high level of close-in voyage disruptions was also offset. However, due to an USD 0.08 impact from the recent spike in fuel prices caused by geopolitical events, we are reducing our full year guidance for 2019 by USD 0.05 per share,” Arnold Donald, Carnival Corporation & plc President and Chief Executive Officer, said.Based on current booking trends, the company expects full year 2019 constant currency net cruise revenues to be up around 4 percent, with capacity growth of 4.2 percent. The company continues to expect its North America & Australia segment yields to be up for the year, but slightly less than previous guidance while its Europe & Asia segment is still expected to be down for the year but slightly more than previous guidance.Fourth quarter constant currency net revenue yields are expected to be down 2 to 3 percent compared to the prior year.last_img read more