Carnival Q2 Profit More Than Doubles; Lifts FY14 Adj. EPS View - Quick Facts

(RTTNews) - Cruise operator Carnival Corp. & plc. (CCL, CUK, CCL.L) reported that its second-quarter GAAP net income significantly increased to $106 million or $0.14 per share from $41 million or $0.05 per share in the same quarter last year.

The latest-quarter result included a net gain on vessel transactions of $15 million and net unrealized gains on fuel derivatives of $11 million. The prior year result included a gain on a ship sale of $15 million and unrealized losses on fuel derivatives of $31 million.

Quarterly non-GAAP net income rose to $80 million, or $0.10 per share from $57 million or $0.07 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.02 per share for the quarter. Analysts' estimates typically exclude special items.

The company President and CEO Arnold Donald noted that second quarter earnings were significantly better than anticipated in the company's March guidance due to better than expected net revenue yields for most of the company's cruise brands, as well as lower than expected net cruise costs.

Revenues for the second grew to $3.63 billion, from $3.48 billion the prior year. Wall Street analysts had a consensus revenue estimate of $3.61 billion.

The company expects non-GAAP earnings for the third quarter 2014 to be in the range of $1.38 to $1.44 per share versus 2013 non-GAAP earnings of $1.38 per share. Analysts project third-quarter earnings of $1.51 per share.

Third quarter constant dollar net revenue yields are expected to be flat to down 1 percent compared to the prior year due primarily to a significant industry capacity increase in the Caribbean. Net cruise costs excluding fuel per ALBD for the third quarter are expected to be 1 to 2 percent higher on a constant dollar basis compared to the prior year.

The company raised its full year 2014 non-GAAP earnings per share guidance to a range of $1.60 to $1.75. Analysts project annual earnings per share of $1.72. The company said in March that it expected annual adjusted earnings in a range of $1.50 to $1.70 per share.

Total revenues are expected to be higher for the full year 2014 compared to the prior year. The company continues to expect full year 2014 net revenue yields on a constant dollar basis to be down slightly compared to the prior year (flat to up slightly on a current dollar basis).