Photo: Carnival Corporation
Miami based cruise operator Carnival Corp is sitting on top of the S&P 500 after it posted 3% rise in Q3 net income.Carnival posted net income of $1.3 billion or $1.69 per diluted share on revenue of $5.1 billion.
Earnings beat Wall Street expectations of $1.64 per share, on revenue of $4.9 billion. This also compares with earnings of $1.62 per share on revenue of $4.5 billion a year ago.
Profits were boosted by strong cruise ticket priciest during summer. Higher revenue helped offset rising fuel costs. Looking ahead CEO Micky Arison said in a release:
“Despite the uncertain economic environment, we have a strong base of business for the first half of 2012, and booking trends during the third quarter have been solid. The increased level of importance consumers are placing on value continues to drive demand for our cruise products.”
Carnival recently bought back 14.5 million shares at a cost of $445 million reflecting the company’s confidence in its earnings power. But rising fuel costs are expected to shave $0.06 off full year earnings. The company now expects Q4 diluted earnings in the range of $0.26 – $0.30 per share, and full year 2011 diluted earnings per share to be in the range of $2.40 – $2.44 per share.
The stock is up 7.72% today, but is down 25.09% year-to-date, as investors have feared the impact of weak economy and consumer sentiment on the company.
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