The outlook for cruise operator Carnival (CCL) looks unsteady after management slashed full-year guidance. It now expects EPS of between $4.15 (£3.14) and $4.25, compared with previous estimates of between $4.20 and $4.40. Higher fuel prices were to blame, costing $0.19 more per share to be exact, coupled with unfavourable exchange rates. This update sent the shares tumbling 10 per cent on results day. Over the past year the shares are down more than 12 per cent.
Despite the dismal outlook, the reported period was fairly positive. Revenue from passenger tickets increased by 12 per cent to $6.3bn, while onboard sales were up 9 per cent to $2.3bn. The fuel costs management has warned of going forward have already started to creep up as the Brent crude oil price increases. Over the six months fuel costs were up by a fifth to $731m. The cruiseship operator carried 5.8m passengers, 3 per cent more than the same time in 2017. Chief executive Arnold Donald said the results “reaffirm” the group’s strategy to create demand that outpaces capacity.
| CARNIVAL (CCL) | ||||
| ORD PRICE: | 4,470p | MARKET VALUE: | £31.8bn | |
| TOUCH: | 4,469-4,471p | 12-MONTH HIGH: | 5,435p | LOW: 4,215p |
| DIVIDEND YIELD: | 3.1% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 3,369p | NET DEBT: | 37%* | |
| Half-year to 31 May | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2017 | 7.74 | 737 | 101 | 75.0 |
| 2018 | 8.59 | 955 | 133 | 95.0 |
| % change | +11 | +30 | +32 | +27 |
| Ex-div: | tbc | |||
| Payment: | tbc | |||
| *Excludes $5.31bn of customer deposits £1=$1.32 | ||||
