NEW YORK (

TheStreet

) --

Carnival

might be listing right now, but according to its own forecasts, the seas ahead will be decidedly smoother.

The cruise line posted a 20% drop in earnings for this, the first quarter of its fiscal year, but it still beat expectations and raised its full-year outlook, sending shares up 7% to $34.13 in early trading.

During the quarter, the company earned $1.07 billion, or $1.33 a share, compared with $1.33 billion, or $1.65 in the year-ago period. Analysts expected a profit of $1.18 a share.

Revenue declined 14% to $4.14 billion from $4.81 billion.

Looking ahead, the company now expects to earn $2.16 to $2.20 a share during the year, up from its prior forecast of $2 to $2.10 a share.

This summer, rival

Royal Caribbean Cruises

(RCL) - Get Report

widened its loss in its second quarter

and slashed its full-year forecast.

-- Reported by Jeanine Poggi in New York

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