Carnival Corporation and plc CCL reported better-than-expected fiscal first-quarter 2018 results.

Earnings of 52 cents per share surpassed the Zacks Consensus Estimate by 9 cents and improved 36.8% year over year. Revenues of $4.2 billion outpaced the consensus mark by $120.9 million and increased 11.6% year over year. This top-line growth year over year was driven by strength across passenger tickets, onboard and other, and tour and other businesses.

Net revenue yields rose 3.9% year over year on a constant-currency basis. The upswing can be attributed to higher net ticket, and net on-board and other yields that increased 4% and 3.9%, respectively, in constant currency.

In the reported quarter, the company benefited from ongoing guest experience efforts along with marketing and public relations programs that drove cruise ticket prices.

Notably, shares of Carnival have rallied 5.8% in the past six months, slightly outperforming the industry’s gain of 5.7%.

Let’s delve deeper into the numbers.

Revenues by Segments

Carnival generates revenues from its Passenger Tickets business, Onboard and Other as well as Tour and Other segments. Revenues at the Passenger Tickets business segment increased 12.3% year over year to $3.15 billion. Onboard and Other revenues totaled $1.07 billion, up 9.5% year over year. Tour and Other revenues increased 44.4% year over year to $13 million.

Carnival Corporation Revenue (TTM)

Carnival Corporation Revenue (TTM) | Carnival Corporation Quote


Net cruise costs (in constant dollar) per available lower berth day (ALBD), excluding fuel, increased 1% and was better than the December guidance of 2-3% increase. Gross cruise costs (including fuel) per ALBD in current dollars increased 9%.

Balance Sheet

Carnival exited the first quarter with cash and cash equivalents of approximately $453 million, up from $395 million in the prior quarter. Trade and other receivables were $345 million, up from $312 million in the previous quarter. Long-term debt was approximately $7.4 billion.

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