Carnival’s 2nd Quarter Adjusted Earnings Beat Expectations

Image Courtesy: Carnival

Cruise liner giant Carnival Corporation & plc announced adjusted net income for the second quarter of 2017 totaling USD 378 million, higher than adjusted net income of USD 370 million booked in the corresponding period last year.

Revenues for the quarter were USD 3.9 billion, also up when compared to USD 3.7 billion in the prior year.

Gross revenue yields increased 2.7 percent. In constant currency, net revenue yields increased 5.1 percent for 2Q 2017, better than March guidance of up 2.5 to 3.5 percent, Carnival said announcing the results.

“Strong execution drove significant operational improvements, which more than offset the substantial drag from fuel and currency, leading to another second quarter adjusted earnings record. It was reinforcing to see over five percent improvement in cruise ticket prices, affirming our efforts to increase demand by building positive word of mouth through the delivery of exceptional guest experiences as well as our innovative marketing and public relations programs,” Carnival Corporation & plc President and Chief Executive Officer Arnold Donald noted.

Highlights from the second quarter include the delivery of Princess Cruises’ Majestic Princess, the first ship tailored for the China market, as well as the addition of AIDAperla to the company’s German brand, AIDA Cruises. Also during the quarter, two additional Princess Cruises ships, Caribbean Princess and Royal Princess, were outfitted with the technical requirements to transition them in early 2018 to the Ocean Platform.

Carnival added that cumulative bookings for the next three quarters are higher at prices that are well ahead of the prior year. During the quarter, booking volumes for the next three quarters have been running in line with last year, also at prices that are well ahead.

” We have accelerated returns to shareholders through our recent dividend increase, with annual dividend distributions now approaching USD 1.2 billion, and the reauthorization of up to USD 1 billion in share repurchases,” Donald said, adding that the company has completed USD 2.7 billion in share repurchases since late 2015.

The company expects full year 2017 adjusted earnings per share to be in the range of USD 3.60 to USD 3.70 compared to March guidance of USD 3.50 to USD 3.70 and 2016 adjusted earnings per share of USD 3.45.

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