Carnival (CCL 59.43, +0.56) has climbed 0.9% after reporting a slim earnings beat and guiding in line with market expectations. Thanks to today's advance, the stock is at a fresh record high.
The cruise ship operator delivered above-consensus first quarter earnings of $0.38 per share on a 3.8% year-over-year increase in revenue to $3.79 billion, which was just north of market expectations.
Revenue per available lower berth day (ALBD) was little changed, ticking up 0.1%. In constant currency, net revenue yields rose 3.8%, which was ahead of the company's guidance for growth between 1.5% and 2.5%.
Gross cruise costs, including fuel, rose 2.9%. The changes in fuel prices reduced earnings by $0.13 per share. The company has made continued efforts to keep customers engaged.
The company is taking advantage of new technology by offering customers a wearable device—the Ocean Medallion, which grants access to different parts of a ship. The Ocean Medallion will be available on Regal Princess in November 2017 and will be added to other Princess ships in 2018.
Carnival debuted Seabourn Encore at a naming ceremony in Singapore and memorandums of agreement for the construction of two new ships were signed with Italy's Fincantieri. Also of note, the company's Carnival Paradise will begin sailing to Havana, Cuba in June.
The company's expectations for the second quarter and the full year are roughly in line with market estimates. Second quarter earnings are expected between $0.43 and $0.47 per share while the earnings guidance range for the full year was increased to $3.50-$3.70 per share from $3.30-$3.60 per share. Cumulative advance bookings for the rest of 2017 are ahead of last year's figures despite considerably higher prices. Booking volumes and pricing for the remainder of 2017 are growing faster than they did last year.