Carnival raises full-year guidance

LONDON (ShareCast) - (ShareCast News) - Cruise-line operator Carnival (LSE: CCL.L - news) lifted its full-year earnings forecasts after putting in a record performance for the three months to the end of August. Earnings per share reached $1.75 up from $1.58 in the same three months of 2014 and versus the $1.63 which analysts had penciled in.

Commenting on the results, Carnival chief Arnold Donald said: "In 2015, we are on track to achieve a nearly 35% earnings improvement and we are accelerating progress toward achieving double digit return on invested capital in the next three to four years.

"Our improved performance has driven even stronger operating cash, which is expected to exceed $4 billion this year." In constant dollar terms, net quarterly revenue yields rose by 4.3% in comparison to a year ago, coming in above the company's own guidance for a rise of between 2% to 3%.

On the other hand, net cruise costs excluding fuel per available lower berth day increased 1% when compared to the year ago figure, ahead of guidance of up 2 to 3% provided in June, albeit due to the timing of certain expenses.

Management increased its forecast for fiscal year 2015 non-GAAP earnings per share to a range of between $2.56 to $2.60 per share.

That was ahead of June's guidance for a range of $2.35 to $2.50 and of $1.93 for 2014.

Donald pointed to the recent 20% in the firm's quarterly dividend as a sign of its commitment to "further enhancing shareholder returns".

Shares (Berlin: DI6.BE - news) of Carnival ended the day lower by 4.93% at 3,333p.