Carnival reports beat on 3Q earnings per share and revenue, but stock retreats on higher fuel costs
Carnival Corp (NYSE:CCL) reported on Thursday a beat in earnings per share and revenue, but company shares fell because of higher fuel costs and currency rate fluctuations which are expected to push earnings lower in the months ahead.
Third quarter earnings per share was at $2.41, above the year-ago level of $2.29 and the consensus expectation of $2.32. Revenue reached $5.84 billion, topping last year’s $5.51 billion and the consensus estimate of $5.81 billion.
Changes in fuel prices (including realized fuel derivatives) and currency exchange rates are expected to decrease earnings by $0.06 per share compared to June guidance and $0.18 per share compared to the prior year, a company statement said.
READ: Carnival Corp cruises past Wall Street estimates but shares sink on guidance
Shares of Carnival declined 5.6% to $63.21 by midsession on Thursday.
“We remain on a path toward continued growth in earnings and returns, driven to a greater degree by capacity increases as we add more efficient ships, replacing less efficient capacity,” said Carnival president and CEO Arnold David.
But the company guided fourth quarter EPS of US$0.65 to US$0.69, which fell short of the market consensus it will reach $0.73.
Prices of the benchmark Brent crude had been trading at their highest level in four years and the US dollar has risen almost 3% this year.
Carnival is one of the world’s leading cruise lines. The company is based in Miami, Florida.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/205907/carnival-reports-beat-on-3q-earnings-per-share-and-revenue-but-stock-retreats-on-higher-fuel-costs-205907.html
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