Carnival Corp. posts $1.4 billion profit in third quarter

FORT LAUDERDALE, Fla. _ Carnival Corp. & PLC had higher-than-expected earnings during its third quarter, aided partly by higher ticket prices and lower fuel costs.

On Monday, the world's largest cruise operator, headquartered outside Miami, announced it generated profit of $1.4 billion, or $1.93 a share, in the fiscal quarter that ended Aug. 31. That compared with profit of $1.2 billion, or $1.56 a share, in the same period in 2015.

Revenue rose 4.4 percent to $5.1 billion, up from $4.9 billion a year ago.

"This quarter, we delivered the highest quarterly earnings in Carnival Corp.'s history with record net income," Arnold Donald, company president and CEO, told analysts during an earnings call.

That performance was achieved, Donald said, in spite of the numerous headwinds facing the cruise industry this year that have included geopolitical events in Europe, concerns about Britain's vote to exit the European Union and the mosquito-borne Zika virus.

During the quarter, Carnival's 10 cruise brands continued "to outperform, particularly in the Caribbean" with continued strength in pricing for last-minute bookings, Donald said. Its European cruise business also saw improvements in revenue yield despite the geopolitical climate there, he added.

Those cruise brands are Carnival Cruise Line, Princess Cruises, Holland America Line, Fathom, Seabourn, Cunard, Costa Cruises, AIDA Cruises, P&O Cruises (U.K.) and P&O Cruises (Australia).

Lower fuel costs also buoyed results during the period, falling to $265 million vs. $345 million a year ago. Meanwhile, revenue from onboard spending from beverage and casino purchases rose slightly to $1.12 billion from $1.1 billion in 2015.

"We are well on track to deliver nearly 25 percent earnings growth in 2016," Donald said. "Looking forward, our booking trends are strong heading into 2017 with higher occupancy levels at higher prices building momentum for continued earnings growth."

For the fourth quarter, Carnival Corp. is forecasting adjusted earnings per share in the range of 55 to 59 cents, compared with 50 cents a share in the 2015 period.

Based on the third quarter's results, the cruise company said it's now expecting full year 2016 adjusted earnings per share to be in the range of $3.33 to $3.37, compared with its June guidance of $3.25 to $3.35.

Carnival Corp. shares slipped 1.45 percent to $46.58 in early afternoon trading Monday.