Carnival Cruises ahead on earnings beat
Carnival Cruise Line reported third quarter earnings for 2017 this week, beating analysts’ expectations and sending a reassuring message to people worried about the unpredictable weather patterns that have dogged the last few months. The Miami-based cruise operator said that its adjusted earnings per share came in at $2.29 – better than analysts expected, at $2.20 – while its revenue was $5.52 billion against forecasts of $5.39 billion. The company’s revenue also beat its last year figure of $5.1 billion in the third quarter. Investors responded as one might imagine, and the share price rose by 3% in morning trading.
Carnival Corp.’s share price has risen by 23% so far this year
SOURCE: Yahoo Finance
The company’s president and CEO, Arnold Donald, praised his staff on their delivery of “another record third quarter” in regards to earnings, and also spoke about the natural disasters that have recently struck the Caribbean, the U.S. and elsewhere. He said:
“We have already made meaningful contributions for the rebuilding efforts in Texas, in Florida, and in the Caribbean, which were matched by the generosity of Micky and Madeleine through the Arison Family Foundation, and our ship immediately provided critically important supplies to several Caribbean destinations quickly after the hurricanes.
“Be assured, we will continue to bring many resources to bear for those and impacted by providing ongoing help and support in the coming months. Meanwhile, it’s important to note that the Caribbean is open for business and is going strong. I would also like to express my sincere appreciation for our team members, both shore-side and shipboard, who pulled together through these events to ensure uninterrupted operations.”
Investors will no doubt be pleased to hear that the Caribbean is back in action, as many of Carnival’s other ports are currently closed. However, the company says that won’t derail earnings too much: Carnival now expects a worse fourth quarter, but better full year, than originally forecast.
Dominion holds Carnival Corporation in its Global Trends managed Fund.
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