Carnival Shares Surge For 2nd Day On 2Q Results

The company said deeply discounted cruise prices had driven a surge in bookings, despite the weak economy. As a result, Carnival said it has started to raise prices from those bargain basement levels.

The company lowered its full-year forecast, however, due to rising fuel prices that are likely to boost its expenses.

Carnival now expects 2009 earnings to range from $2 to $2.10 per share, down from the company's previous guidance range of $2.10 to $2.30. The company expects third-quarter earnings of $1.15 to $1.19 per share.

Analysts polled by Thomson Reuters predict a 2009 profit of $2.10 per share and third-quarter earnings of $1.23 per share.

"While the outlook is lower on a net basis, the internals are actually quite encouraging," said Robert LaFleur of Susquehanna Financial Group in a note to investors. "Booking volumes are accelerated and the level of discounting is beginning to ease somewhat."

LaFleur maintained a "Positive" rating on the stock and raised its price target to $31 from $26.