Carnival Corporation & plc reported a profit for the third-quarter that increased 17 percent from the prior year.
Article continues below
The company said it is well on track to deliver nearly 25 percent earnings growth in 2016. It raised adjusted earnings per share guidance for fiscal year 2016.
Arnold Donald, the president and chief executive officer of the company, said, "We are well on track to deliver nearly 25 percent earnings growth in 2016. With cash from operations expected to reach a record $5 billion this year, we continue to fund our growth and return cash to shareholders
"Looking forward, we are well positioned for continued earnings growth given the current strength of our booking and pricing trends in 2017."
Fourth quarter constant currency net revenue yields are expected to be up approximately 3 percent compared to the prior year. Fourth quarter constant currency net cruise costs excluding fuel per ALBD are expected to be higher by approximately 1 percent compared to the prior year.
Carnival expects adjusted earnings per share for the fourth quarter 2016 to be in the range of $0.55 to $0.59 versus 2015 adjusted earnings per share of $0.50.
The company has increased its full year 2016 adjusted earnings per share guidance to be in the range of $3.33 to $3.37, compared to the June guidance range of $3.25 to $3.35 and 2015 adjusted earnings per share of $2.70.
The company continues to expect full year 2016 net revenue yields to be up approximately 3.5 percent compared to the prior year, on a constant currency basis.
The company continues to expect full year net cruise costs excluding fuel per ALBD to be up approximately 1.5 percent compared to the prior year, on a constant currency basis.
Net income for the third-quarter increased 17.1 percent to $1.42 billion, from last year's $1.22 billion, with earnings per share improving to $1.93 from $1.56 in the prior year.
Third quarter 2016 adjusted net income of $1.4 billion, or $1.92 adjusted earnings per share was higher than adjusted net income of $1.4 billion, or $1.75 adjusted earnings per share, for the third quarter of 2015.
Adjusted net income excludes unrealized gains and losses on fuel derivatives and other net charges, totaling $7 million in gains for the third quarter 2016 and $149 million of losses for the third quarter 2015.
Revenues for the third quarter of 2016 were $5.1 billion, $0.2 billion higher than the $4.9 billion in the prior year.
Gross revenue yields ,revenue per available lower berth day or "ALBD", increased 0.6 percent. Net revenue yields on a constant currency basis increased 2.7 percent for 3Q 2016, toward the top end of the June guidance range of up 2 to 3 percent.
Gross cruise costs including fuel per ALBD decreased 0.2 percent. Net cruise costs excluding fuel per ALBD on a constant currency basis increased 5.5 percent, better than June guidance of up 6 to 7 percent, due to the timing of certain expenses.
The company also signed a memorandum of agreement with shipbuilders Meyer Werft and Meyer Turku for the construction of three new 180,000-ton cruise ships.
Two of the ships, to be built in Finland, will be added to the Carnival Cruise Line fleet in 2020 and 2022. The third ship, to be constructed in Germany, will join the P&O Cruises UK fleet in 2020.
All three vessels will be fully powered by Liquefied Natural Gas, the world's cleanest burning fossil fuel.
In conjunction with these new ship orders, the delivery dates for two previously contracted ships, one for AIDA Cruises and one for Costa Cruises, will shift from 2020 to 2021 to ensure a measured pace of capacity growth over the coming years. ■