UPDATE: Carnival Posts Higher FQ2 Profit, Issues Weak FQ3 Forecast
Carnival (NYSE: CCL) reported better-than-expected fiscal second-quarter earnings and issued a weak profit forecast for the third quarter.
Carnival's quarterly profit surged to $106 million, or $0.14 per share, versus a year-ago profit of $41 million, or $0.05 per share. Its adjusted earnings came in at $0.10 per share, compared to $0.07 per share.
Its revenue rose to $3.633 billion from $3.479 billion. However, analysts were expecting earnings of $0.02 per share on revenue of $3.603 billion.
On a constant dollar basis, net revenue yields fell 2.2%, while net cruise costs excluding fuel per ALBD rose 1.2%. Fuel prices dropped 3.7% to $657 per metric ton, while fuel consumption per ALBD slipped 6%.
For the current quarter, Carnival now expects an adjusted profit of $1.38 to $1.44 per share. However, analysts were projecting earnings of $1.51 per share.
Carnival lifted its full-year adjusted earnings forecast to $1.60 to $1.75 per share, from from $1.50 to $1.70 per share.
Carnival Corporation & plc President and CEO Arnold Donald said, "We benefited from effective marketing initiatives, which combined with a gradually improving economic environment, led to revenue yield improvement for our continental European brands in the quarter compared to the prior year and is expected to continue through the remainder of the year. In addition, we achieved a six percent improvement in fuel consumption."
Carnival shares fell 2.39% to $38.47 at 10:40 a.m. ET.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.