Carnival Parties Like It's 2011
These may be challenging times for the cruise line industry given the plethora of disruptive storms and potential political challenges for travel restrictions, but Carnival Corporation & plc (NYSE: CCL) (NYSE: CUK) is still coasting along with reasonable growth.
The world's largest cruise ship operator posted results for its fiscal second quarter on Tuesday morning, with revenue climbing 8% during the seasonally potent summertime period to $5.5 billion. An 8% year-over-year uptick may not seem like much, but this is Carnival's strongest growth in six years. Reported earnings declined, but after backing out unrealized gains and losses on fuel derivatives and other net charges (the best way to smooth out performance given that Carnival makes big bets to hedge against the volatility of fuel costs and the one-time $392 million impairment charge related to its decision to realign its business in Australia), adjusted net income rose to $2.29, up nicely from its $1.92-a-share showing a year earlier.
Source: Fool.com