Carnival Corporation sees record first quarter
The world’s largest cruise company, Carnival Corporation, reported record earnings for the first quarter of 2018 at the end of last week. The company said net income hit $391 million, an increase on the $352 million it reported for the first quarter of 2017. It also saw rising revenues, coming in this time around at $4.2 billion, compared against $3.8 billion in the year-ago quarter. The company’s forecast for the rest of the year promises more of the same.
In a statement, Carnival gave investors cause for optimism, saying: “Cumulative advance bookings for the remainder of 2018 are in line with the prior year at higher prices. Since January, booking volumes for all future periods have been running ahead of prior year at higher prices.”
Carnival’s share price is up by 11% over the past 12 months
SOURCE: Yahoo Finance
The company’s president and CEO, Arnold Donald, said: "We are off to a strong start to the year achieving another quarter of record earnings on record revenues and exceeding the high end of guidance. This strong operational execution affirms our efforts to create demand in excess of measured capacity growth and exceed guest expectations once onboard.”
"Our guest experience efforts, coupled with our ongoing marketing and public relations programs are clearly accelerating cruise demand across the board to drive cruise ticket prices higher."
The company said that net revenue for the quarter increased by 3.9% - easily outpacing the 1.5% to 2.5% figure that Carnival had forecast. As a result, and in light of increased marketing efforts, a dedication to passenger entertainment, and the debut of two new environmentally friendly cruise ships, the company is raising its forecast for the full year. Carnival now expects a “double-digit return on invested capital” and expects full year 2018 net revenue yields to be up by around 2.5%.
Dominion holds Carnival Corporation in its Global Trends Luxury Fund.
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