Smoother Sailing For Carnival As Q4 Results Top Estimates

(RTTNews) - Cruise operator Carnival Corp. & plc (CCL, CUK, CCL.L) reported Thursday a profit for the fourth quarter that declined from last year, as the company spent heavily to improve ships after a series of mishaps.

However, both adjusted earnings per share and quarterly revenues topped analysts' expectation, thanks in part to aggressive marketing that lured customers back onboard.

The company also provided earnings guidance for the second quarter and full-year 2014, in line with Street view.

Chairman and CEO Micky Arison says Carnival has made progress restoring the brand after a fatal shipwreck in Italy and a mechanical problems in the Gulf of Mexico left 4,000 people stranded at sea for days.

The Miami, Florida-based company reported net income of $66 million or $0.08 per share for the fourth quarter, lower than $93 million or $0.12 in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $35 million or $0.04 per share, compared to $111 million or $0.14 per share in the year-ago quarter.

On average, 16 analysts polled by Thomson Reuters expected Carnival to report breakeven per share results for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew to $3.66 billion from $3.58 billion in the same quarter last year, and topped twelve Wall Street analysts' consensus estimate of $3.58 billion.

Arison noted that fourth quarter adjusted earnings were better than September guidance due primarily to better than expected cruise ticket prices and onboard spending for Carnival Cruise Lines.

For the fourth quarter, revenues from cruise passenger ticket sales totaled $2.70 billion, higher than $2.66 billion last year, and cruise on-board and other revenues for the period grew to $929 million from $894 million in the year-ago quarter.

Operating costs and expenses for the quarter increased to $3.56 billion from $3.40 billion in the year-ago quarter.

Fuel prices for the quarter decreased 6.3 percent to $671 per metric ton from last year's $716 per metric ton.

For fiscal 2013, the company reported net income of $1.08 billion or $1.39 per share, lower than $1.30 billion or $1.67 per share in the prior year. Excluding items, adjusted net income for the year was $1.23 billion or $1.58 per share, compared to $1.51 billion or $1.94 per share in the year ago. Analysts expected the company to report earnings of $1.55 per share for fiscal 2013.

Revenues for the full year grew to $15.46 billion from $15.38 billion in the previous year. Street was looking for full-year 2013 revenues of $15.40 billion.

Looking ahead to the first quarter of fiscal 2014, Carnival expects adjusted loss in a range of $0.07 to $0.11 per share. Analysts expect the company to report a loss of $0.07 per share for the quarter.

For fiscal 2014, the company currently projects adjusted earnings in a range of $1.40 to $1.80 per share. Street is currently looking for full-year 2014 earnings of $1.59 per share.

"With over 100 ships and more than 10 million guests we have a scale advantage that cannot be replicated in this industry. We are aggressively seeking opportunities to leverage that scale to drive top line improvement and gain cost efficiencies," Arison added.

The company said it will commence a number of strategic initiatives designed to fuel earnings power, drive cash flow and improve return on invested capital over time in fiscal 2014.

In Thursday's regular trading session, CCL is currently trading at $38.08, up $0.97 or 2.60% on a volume of 5.24 million shares. In the past 52-week period, the stock traded in a range of $31.44 to $3.62. CUK is currently trading at $37.88, up $1.31 or 3.58% on a volume of 0.29 million shares.

CCL.L is currently trading on the London Stock Exchange at 2,301.00 pence, up 109.00 pence or 4.97% on a volume of 1.78 million shares.