- Fourth-quarter earnings surpassed analysts' estimates
- Company has started selling at higher prices than a year ago
Carnival Corp., the world’s biggest cruise operator, rose after saying advance bookings for the first three quarters of 2016 are well ahead of the previous year at slightly higher prices.
The Miami-based company, which also posted fourth-quarter earnings that beat analysts’ estimates, is selling cruises at higher prices, particularly close to departures, according to a statement Friday. Fares have been rising domestically all year amid the improving U.S. economy and continued investment on the part of Carnival and its rivals in new ships and on-board amenities.
- Profit excluding some items of 50 cents a share in fourth quarter, compared with 41-cent average of estimates compiled by Bloomberg.
- Revenue slightly lower than predicted at $3.71 billion, versus estimate of $3.72 billion
- Sees 1Q adjusted EPS 28 cents to 32 cents, versus average prediction of 30 cents.
- Full-year EPS of $3.10 to $3.40. Analysts anticipated $3.31.
The company benefited from increased demand for cruises, as well higher guest spending on items such as alcoholic beverages, Chief Executive Officer Arnold Donald said in an interview.
“We got a nice lift in onboard, they’re spending more money with us,” Donald said.
Carnival rose 3.9 percent to $52.41 at the close in New York. The stock has gained 16 percent this year, while the Standard & Poor’s 500 Index is down 2.6 percent.