Carnival posts quarterly profit drop

Doral-based Carnival Corp. & PLC on Thursday reported reduced profit in second quarter fiscal 2017 from a year ago, which was squeezed in part by higher fuel costs and changes in currency exchange rates.

The cruise giant’s net income for the three-month period ending May 31 was $379 million or 52 cents a share, compared to $605 million, or 80 cents per share in the 2016 financial quarter.

Adjusted net income, which excludes unrealized gains or losses on fuel derivatives and other charges, was $378 million, or 52 cents a share, versus $370 million and 49 cents a share in the year-ago quarter.

Revenue in the quarter rose to $3.9 billion from $3.7 billion the year before.

“We achieved record second quarter adjusted earnings of 52 cents per share…and we exceeded the midpoint of our guidance by seven cents,” said Arnold Donald, company president and CEO, during an earnings call with analysts.

Donald said the quarter’s results combined with a “strong booked position” for future cruises this year has enabled the cruise company to raise full year adjusted earnings per share guidance, now expected to be between $3.60 and $3.70. In March, the company had forecast guidance of $3.50-$3.70.

“Strong execution drove significant operational improvements, which more than offset the substantial drag from fuel and currency,” Donald noted in an earlier earnings press release.

Aiding the quarter’s results was also a more than five percent improvement in cruise ticket prices, Donald said. Additionally, the period posted gains in onboard spending and other revenue.

Carnival’s second quarter’s earnings beat analysts’ estimates of 42 cents per share and revenue of $3.87 billion, according to Zacks Equity Research.

The cruise company’s