Cruise operator Carnival Corporation reported record revenue last quarter, but has forecast an over US$500 million (A$726.4 million) hit to its full-year profits due to surging fuel costs.
Carnival’s adjusted earnings per share were US$0.20, up from $0.13 one year ago and beating Zacks consensus estimates of $0.18. Revenue was $6.17 billion, rising from $5.81 billion and above estimates by 0.97%.
“We delivered a strong start to the year, with record first-quarter operating results that exceeded our guidance, driven by healthy fundamentals and solid execution across the business,” said CEO Josh Weinstein.
“This performance supported an increase to our full year operational outlook of nearly $150 million, helping to mitigate the impact of higher fuel prices.”
Adjusted net income was $275 million, up from $174 million last year, despite a $54 million hit from higher fuel prices and currency rates. Operating income was $607 million, growing from $543 million.
The company expects an impact of over $500 million from fuel prices. Oil prices have soared amid the United States and Israel’s war on Iran, with Brent crude prices have risen 51% since the beginning of March.
Fuel consumption per available lower berth day fell 4.7% last quarter. Adjusted cruise costs, including fuel, will increase around 3.1% from 2025, Carnival projected.
It forecast full-year earnings per share of $2.21, down from its previous guidance of $2.48.
Carnival’s (NYSE: CCL) shares closed 4.3% lower at $24.19, but rose 0.5% after-hours. Its market capitalisation is $33.51 billion.
