29th Jan 2016 15:53
LONDON (Alliance News) - Carnival PLC on Friday lowered slightly its earnings guidance for its current financial year, as lower fuel prices are expected to be offset by the strong dollar, the currency in which the FTSE 100 cruise operator reports.
Back in December, Carnival said it expected its adjusted diluted earnings per share for the first quarter of financial 2016 to be in the range of USD0.28 and USD0.32. It expected its adjusted diluted earnings per share for the full financial year, which ends in November, to be in the range of USD3.10 and USD3.40.
Based on fuel cost and foreign exchange assumptions updated on Tuesday this week, Carnival said its guidance for adjusted diluted earnings per share for the first quarter is reduced by USD0.02, while for all of financial 2016 it is reduced by USD0.08. Adjusted diluted earnings per share amounted to USD2.70 in the year ended November 30, versus USD1.93 the prior year, according to Carnival's earnings reported in December.
"This decrease was caused by foreign currency exchange rates, including both foreign currency translational and transactional impacts of USD0.11 per share, partially offset by a USD0.03 per share increase due to lower fuel prices, net of forecasted realized losses on fuel derivatives. In addition, our adjusted diluted earnings per share for the 2016 first quarter would decrease by USD0.02," Carnival said.
Carnival noted that the fuel and currency assumptions used in its guidance change daily, so its own forecasts also change daily. The revised guidance on Friday was included with the filing of Carnival's annual report with the US Securities & Exchange Commission.
Shares in Carnival were up 2.0% at 3,450.00 pence in London on Friday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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