Carnival's Stock Surges After Profit, Sales Rise Above Expectations

Carnival Corp.'s stock surged 4.5% in morning trade Tuesday, after the cruise operator reported fiscal second-quarter profit and revenue that rose above expectations. For the quarter ended May 31, earnings increased to $605 million, or 80 cents a share, from $222 million, or 29 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 49 cents, above the FactSet consensus of 39 cents. Revenue rose to $3.71 billion from $3.59 billion, above the FactSet consensus of $3.68 billion, with passenger ticket revenue of $2.70 billion topping expectations of $2.68 billion. Looking ahead, Carnival expects third-quarter adjusted EPS of $1.83 to $1.87, below the FactSet consensus of $1.98. The company also announced a new $1 billion stock repurchase program. The stock, which had tumbled 12% in the past two sessions in the wake of the U.K.'s vote to leave the European Union, has shed 16% year to date, while the S&P 500 has gained 1.2%.