Carnival beats quarterly guidance, sees profit growth in 2020

Carnival reported record full-year revenues and profits despite multiple headwinds, and with its fourth quarter results coming in ahead of analysts' expectations.

"We overcame a high number of unusual events compounded by a significant downturn in leisure travel demand for our large source markets in Continental Europe," said Carnival boss Arnold Donald.

During the company's fourth quarter, total sales increased by 6.7% to reach a record $4.8bn, pushing the 2019 total up by 10.1% to $20.8bn.

However, at constant currencies, net cruise revenues in the latest quarter were unchanged versus a year ago at $3.7bn.

And the cruise line operator's adjusted net income fell from $492.0m to $427.0m, for earnings per share of 62 cents against 70 cents one year earlier, despite tailwinds from changes in fuel prices and exchange rates which added 11 cents to the company's EPS.

But it wasn't all about FX, at constant exchange rates net revenue yields over the latest three months only declined by 1.8%, against company guidance for a drop of 2.0-3.0%.

Also at constant currencies, net cruise costs excluding fuel rose by 2.6%, versus guidance for a jump of 4.0-5.0%, which the company attributed to "cost improvements realized during the quarter and timing of expenses between quarters."

For 2019 as a whole, it was the opposite, with adjusted net income steady at $3.0bn but EPS rising from $4.26 to $4.40.

Looking out to 2020, Carnival management said it was entering the new fiscal year with a record booked occupancy position.

At constant currencies, net cruise revenues would rise by roughly 5.0%, capacity growth by 6.6% and net revenue yields would fall by approximately 1.5% in comparison to the year before.

Adjusted full-year 2020 EPS was pegged at $4.30-4.60.

In a separate announcement, Carnival said that delivery of its new Mardi Gras oceanliner would be delayed, with the first revenue sailing of the ship not anticipated until 14 November.

As of 1518 GMT, shares of Carnival were spiking, climbing 6.49% to 3,576.0p, helping the shares come off their recent multi-year lows.