Carnival Beats Estimates on Lower Net Income

Carnival (CCL), the world's largest cruise ship operator, reported that net income fell in Q4 but beat estimates. Profit for Q4 fell to $358 million, or EPS of $0.44, from $416 million, or $0.51 last year. Revenue rose 11% to $3.12 billion, from $2.81 billion last year. Analysts predicted net income of $0.43 per share on revenue of $3.08 billion. Carnival had estimated EPS of $0.42 to $0.44. The company said on Thursday that its quarterly earnings fell as higher fuel costs offset stronger pricing. For the fiscal year, net income rose 6% to $2.41 billion, or $2.95/share, from $2.28 billion, or $2.77/share last year. Revenue rose 10% to $13.03 billion from $11.84 billion.

Carnival, which plans to grow capacity by 9% next year, predicts a profit of $3.10 to $3.30/share (midpoint of $3.20) for 2008, including $0.50 share in costs related to higher fuel. The company expects Q1 profit of $0.29 to $0.30/share, down from $0.35/share a year ago. Analysts estimate a profit of $3.22 /share for the year and $0.35/share for Q1, because they believe the increased fuel costs have already been taken into account. Previous estimates were for $0.36/share in Q1 and $3.24/share for the year. Looking ahead, Carnival said that advanced bookings for the first half of 2008 were "well ahead" of the same time a year ago in terms of both pricing and occupancy. While still early in the booking process, bookings for the second half of the year are following a similar trend, the company said.

Sources: AP

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