Carnival income rises but Q1 outlook less cheery
By Michele Maatouk
Date: Thursday 20 Dec 2018
(Sharecast News) - Cruise ship operator Carnival posted a rise in fourth-quarter income on Thursday as it hailed record full-year earnings.
GAAP net income for 2018 came in at $3.2bn from $2.6bn the year before, with diluted earnings per share of $4.44 versus $3.59 in 2017. Full-year adjusted net income, meanwhile, increased to $3bn from $2.8bn, with adjusted EPS of $4.26 compared to $3.82.
Revenues for the full year came in at $18.9bn, up from $17.5bn the year before.
The outlook for the first quarter of next year was less rosy, however, as Carnival warned that changes in fuel prices and currency exchange rates were expected to dent earnings by $0.03 per share. As a result, it now expects adjusted earnings per share in Q1 of between $0.40 and $0.44, down from 2018 adjusted EPS of $0.52.
President and chief executive officer Arnold Donald said: "We delivered strong fourth quarter earnings and record adjusted fourth quarter earnings to top off a record breaking year. In 2018, we grew net cruise revenue (constant currency) over five percent, achieving the highest revenue yields (constant currency) in our company's history, and producing double-digit adjusted earnings growth despite a significant drag from fuel and currency.
"More importantly, we achieved double-digit return on invested capital in line with the target we established five years ago. I thank our 120,000 team members around the globe who encountered multiple headwinds and still delivered for our shareholders a more than doubling of return on invested capital in just five years, as well as our valued travel agent partners whose strong support enabled these record results."
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