Carnival’s first-quarter revenue increased by 6% to $6.2bn, boosted by strength in late bookings.
Underlying cash profit (EBITDA) grew by 5% to $1.3bn, slightly ahead of guidance, despite a $54mn hit from fuel prices.
Improved cash generation drove free cash flow up by $0.4bn to $0.7bn. Net debt was $23.9bn.
Full-year guidance for underlying cash profit had been reduced from around $7.6bn to $7.2bn, assuming oil prices fall over the rest of the year
Carnival expects to pay over $0.8bn in dividends this year and today announced a $2.5bn buyback program.
The shares were down 2.7% following the announcement.
Our view
HL view to follow.
Carnival key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.