3:00PM New York- Carnival Corp. & plc third quarter earning rise 12.1%.

Carnival Corporation & plc (CCL: chart) reported third quarter to August 31, 2007 earnings rose 12.1% to $1.67 per share or net earnings of $1.38 billion versus analysts’ consensus at $1.62 per share. Last year, earnings stood at $1.49 or net income of $1.23 billion.

Net revenue in the quarter increased to $4.32 billion from $3.91 billion a year ago.

For the nine months to August 31, Carnival Corp net income increased to $2.1 billion or $2.51 earnings per share on revenues of $9.91 billion. A year ago, net earnings were $1.86 billion or earnings of $2.25 per share with revenue of $9.03 billion.

During the quarter, introduction of new ships for North America and Europe and stronger prices helped boost earnings. Carnival Corp said European brands benefited from increased revenue yields on a dollar basis due to stronger euro and sterling currencies. Local currency revenue yields were down against very strong comparisons with the previous year. For the quarter net revenue yields rose 2.5% from prior year and net cruise costs up 3.3%. Fuel prices at $376 in the quarter, moved in line with company predictions of $375 per metric ton.

For the future, Carnival Corp expects fourth quarter earnings per share in the region $0.42 and $0.44, below analysts’ estimates of $0.47. In the fourth quarter last year, earnings per share stood at $0.51. For the year, the group targets earnings per share of between $2.92 and $2.94, revised from previous guidance of $2.85 and $2.95.

Occupancy for advance bookings in the fourth quarter and first half of 2008 are ahead of target, stimulated by discounts on Caribbean cruises. Carnival Corp says North American businesses will experience a marginal improvement in net revenue yields for the year.

On September 14, Carnival Corp began operating its 75 percent-owned joint venture with Orizonia Corporation for a multi-ship Spanish cruise line, Iberocruceros. The new brand is operating the 1,244 passenger Grand Mistral and the 834 passenger Grand Voyager. In June 2008, Carnival Cruise Lines'' 1,486-passenger Celebration will join the Iberocruceros fleet. At the end of Q4, Cunard Line''s 90,000-ton Queen Victoria, is expected to join Queen Elizabeth 2 and Queen Mary 2.

In Monday afternoon trading, Carnival Corp stocks gained 0.65% to $49.10. The share is trading below its 52-week high of $52.73. Over the last twelve months, Carnival has traded in the region $41.70 to $52.73 and is now chasing a one year median target price from analysts of $53.67. The share is trading at a price to earnings ratio of 17.4 times. Carnival market cap stood at $41.50 billion as of Sept.24, 2007 while competitor Royal Caribbean Cruises Ltd was valued at $8.94 billion.

Carnival Corporation & plc is the largest cruise vacation group in the world, with a portfolio of cruise brands in North America, Europe and Australia, comprised of Carnival Cruise Lines, Holland America Line, Princess Cruises, Seabourn Cruise Line, AIDA Cruises, Costa Cruises, Cunard Line, Iberocruceros, Ocean Village, P&O Cruises and P&O Cruises Australia. These brands operate 84 ships with 156,000 lower berths and 17 new ships scheduled to enter service between December 2007 and June 2011.