Carnival first quarter EPS flat, sees lower yields in 2014

25th Mar 2014 13:38

Cruise line operator Carnival registered flat earnings per share (EPS) during the first quarter of its fiscal year. Net revenue yields during the period fell by 2.1% in comparison with 2013, but were ahead of the company´s guidance for a drop of 3-4%. Similarly, net cruise costs, excluding fuel per available lower berth day (ALBD), increased by 3.3% due to higher spending on advertising, which was better than December´s guidance that costs might increase 4.5% to 5.5%.Advance bookings for the remainder of 2014 are running ahead of last year´s levels, but at lower prices, the company said in a statement. Guidance for net revenue yields may disappointLikewise, and always on a constant dollar basis, net revenue yields are seen down slightly over the course of 2014 and net cruise costs slightly higher. This guidance was lower than the 1.5% rise expected by analysts at Numis following recent upbeat guidance from competitor Royal Carribean Cruises. The company guided towards full-year earnings per share of between $1.50 and $1.70, versus $1.58 for the whole of last year. In the second quarter of 2014, Carnival expects to achieve an EPS of between minus-two cents to plus two cents, below last year´s level of seven cents. Despite the lower booking prices in the latest season, the company´s Chief Executive Officer, Arnold Donald, highlighted the fact that booking volumes are up almost 20% globally, ahead of the previous year´s mark. He attributed part of the improvement to increased marketing spend, while noting that many guests are now booking further in advance. The firm is also looking to increase its degree of capacity utilisation, Donald added. AB