Carnival: Lower Profits Beat Estimates, Shares Up

But its current-quarter forecast missed analysts' expectations

   

Carnival (NYSE:CCL) announced on Tuesday that it earned $1.33 billion during its fiscal third quarter, narrowly lower than $1.34 billion in the same period last year.

Adjusted non-GAAP EPS was $1.53, down from $1.69 last year, but topping previously issued guidance of between $1.42 and $1.46 a share, MarketWatch noted.

dont miss the boat water wake 630 200x200 Carnival: Lower Profits Beat Estimates, Shares Up
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For the quarter, revenue declined to $4.7 billion, down 7.4% from last year, but just beating analysts, who estimated $4.68 billion.

Investors liked the news. Shares of Carnival rose more than 3% in Tuesday morning trading.

The cruise line operator said that fuel prices dropped 3.9% compared to last year. The amount of fuel used in Carnival ships declined 2.8% over 2011.

Company officials said they anticipated earnings per share of between 7 cents and 11 cents in the fourth quarter. That was less than the 16 cents that Wall Street expects.

Carnival also trimmed its full year earnings guidance from previously-issued forecast of between $1.80 and $1.90, to a new range of between $1.83 and $1.87.

Booking volumes at the cruise operator are increasing while  ticket prices are rise. Carnival is repairing its image after the wreck of the Costa Concordia, owned by one of its subsidiaries, back in January.


Article printed from InvestorPlace Media, http://investorplace.com/2012/09/carnival-lower-profits-beat-estimates-shares-up/.

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