Carnival misses forecasts for second quarter revenues

24th Jun 2014 16:03

Cruise line operator Carnival reported second quarter revenues increased 4.4% to $3.48bn.The consensus estimate had been for sales to increase to $3.6bn.Net revenue yields slipped by 2.2%, that was less than the decline between 3% to 4% that was forecast by the company in March. That was partly the result of net cruise costs excluding fuel per available lower berth day ("ALBD") rising by a less than expected 1.2% when compared to the prior year, better than guidance for an increase of between 2.5% to 3.5%.Fuel consumption in the second quarter decreased by 6% in comparison to a year ago.On a pro-forma basis net income was $80m, equivalent to earnings per share (EPS) on a pro-forma basis, excluding a $0.04 gain on vessel transactions and fuel derivatives (consensus: $0.02), of $0.10. That was ahead of the $0.05 seen last year. As regards the outlook for the coming year the company said that cumulative bookings were running slightly ahead of 2013's levels and at higher prices. For the third quarter earnings per share (EPS) are now called to come in at between $1.38 and $1.44, versus $1.38 last year. Overall, 2014 EPS was expected to reach between $1.60 and $1.75, ahead of the $1.58 seen last year. Chief Executive Officer Arnold Donald attributed the improved second quarter performance to "a gradually improving economic environment" and the company's "effective marketing strategies".As of 15:45 shares of Carnival were moving 1.47% lower to 2,279p. AB