If Carnival can not just fill boats but get more money out of each passenger it will have hit on something that's eluded the industry for the last few years.
Carnival Corp., the world’s biggest cruise operator, rose after saying advance bookings for the first three quarters of 2016 are well ahead of the previous year at slightly higher prices.
The Miami-based company, which also posted fourth-quarter earnings that beat analysts’ estimates, has began to sell at higher prices, particularly close to departure, according to a statement Friday. Cruise fares have been rising domestically all year amid the improving U.S. economy and continued investment on the part of Carnival and its rivals in new ships and on-board amenities.
- Profit excluding some items of 50 cents a share in fourth quarter, compared with 41-cent average of estimates compiled by Bloomberg.
- Revenue slightly lower than predicted at $3.71 billion, versus estimate of $3.72 billion
- Sees 1Q adjusted EPS 28 cents to 32 cents, versus average prediction of 30 cents.
- Full- year EPS of $3.10 to $3.40. Analysts anticipated $3.31.
Carnival rose 2.4 percent to $51.69 at 9:40 a.m. in New York. The stock had gained 11 percent this year through Thursday, while the Standard & Poor’s 500 Index dropped 0.8 percent.
This article was written by Christopher Palmeri from Bloomberg and was legally licensed through the NewsCred publisher network.
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Photo credit: Carnival Corp. CEO Arnold Donald at an event at the New York Stock Exchange. Carnival Corporation