Fuel Costs Jumped 36% and Carnival Still Posted Record Attributable Net Income. Here's What That Says About the Cruise Boom.
You know a company is hot when a massive increase in a cost item can't stop it from netting a profit approaching $2 billion.
Overview
If you were told that the quarterly costs for a company's key input had risen by 36% year over year, wouldn't you assume that its profitability took a serious hit for the period?
That'd be a sensible reaction; however, in the case of Carnival's (NYSE:CCL) just-reported third quarter, it would be dead wrong. In fact, the company notched several all-time highs in certain metrics in the quarter. For this, it was rewarded with a more than 13% pop in its share price after those earnings were announced. Here's how the cruise ship operator managed to pull off this seemingly difficult feat.
Image source: Carnival.
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Originally published at www.fool.com.