Carnival (CCL) Earnings Rise 95% on Cheap Fuel, Higher Fares

 
Cruise ship operator stocks Carnival (CCL) and Royal Caribbean (RCL) gapped higher Wednesday after Carnival reported fiscal-firstquarter earnings that nearly doubled as fuel prices remained low and pricing held steady, Investor’s Business Daily reported.

Carnival’s Q1 per-share profit jumped 95% to 39 cents a share, topping expectations by seven cents. Revenue grew over 3% to $3.65 billion, slightly above forecasts for $3.63 billion, marking the second straight quarter of earnings and sales acceleration for the cruise ship operator.

Gross cruise costs, including fuel, fell 6% during the quarter on changes in fuel costs and currency exchange rates.

Carnival said that advance bookings for the rest of 2016 are “well ahead of the prior year at slightly higher prices” and that since January, booking volumes for the year are “running ahead of last year’s historically high levels at higher prices.”

Carnival shares rose 5.5% to 52.37,  and Royal Caribbean jumped 5.7%. CCL and RCL are Smart Investing in Turbulent Times stocks.

Stock Picks

Loews Corp.

This undervalued stock has strong future earnings growth expectations.

Biogen

Biogen is the market-share leader in treating multiple sclerosis.

Weibo

One of Paul Godwin’s favorite stocks in his Cabot Emerging Markets Investor portfolio.

Cabot Wealth Advisory

Does Alibaba (BABA) Stock Measure Up to Amazon (AMZN)?

By Paul Goodwin on September 23, 2016

Alibaba (BABA) is the Amazon (AMZN) of China. But does BABA stock measure up to AMZN stock? Let’s break it down!Read More >

As Stock Market Trends Change, Invest in these New Leaders

By Michael Cintolo on September 22, 2016

History tells us that all stock market trends change, and if you don’t recognize the leaders of that change early, you risk missing out on the next big winners.Read More >

AMZN Stock vs. FB Stock: Which Is the Better Value Buy?

By J. Royden Ward on September 20, 2016

For the past five years, AMZN stock and FB stock have been two of the market's great growth stories. But could you make the case that either stock is still undervalued? Let’s break it down.Read More >