Carnival makes a splash with improved earnings guidance

First quarter results from Carnival made a splash as sales and earnings beat expectations and the cruise operator ran up higher guidance for the full year.

As well as lower fuel prices, advance bookings for the rest of 2016 were said to be "well ahead" of the prior year at "slightly higher" prices.

First-quarter net revenue yields were up 5.7% in constant currencies, beating the 3.5%-4.5% guidance issued in December, while adjusted earnings per share of $0.39 were almost double the $0.20 in the same period last year.

Earnings after unrealized losses on fuel derivatives and other net costs were $0.21 per share.

Net cruise costs rose more slowly than predicted, up 1.6% on the prior year versus the 2.5%-3.5% guidance.

For the full year, the Miami-based group raised its adjusted earnings per share guidance to a range of $3.20-$3.40, compared to December's guidance of $3.10 to $3.40.

Chief executive officer Arnold Donald said the company had reaped the benefit of "creating increased demand for our brands" through improvements in the guest experience coupled with "increasingly effective marketing and communication".

Since January, booking volumes for the remainder of the year are running ahead of last year's historically high levels at higher prices, he added.

"The lower levels of inventory remaining for sale for the balance of the year, particularly for our peak summer period, positions our brands well for continued revenue yield growth and builds confidence in our full year earnings forecast."