Carnival shares sink on outlook, cost concerns |

Carnival shares sink on outlook, cost concerns

The Associated Press
FILE- In this June 20, 2016, file photo, a jet skier passes in front of the Carnival Sensation cruise ship as it leaves PortMiami, in Miami Beach, Fla. Carnival reports financial results on Monday, June 25, 2018. (AP Photo/Lynne Sladky, File)

NEW YORK — Carnival Corp. shares tumbled Monday after the cruise operator gave a weaker-than-expected outlook, citing growing fuel costs.

The stock fell $6.11, or 9.6 percent, to $57.42 in morning trading. The lackluster guidance and concern over growing costs helped drag down its peers.

Shares of Norwegian Cruise Line Holdings Ltd. fell $3.17, or 6.1 percent, to $48.17. Royal Caribbean Cruises Ltd. shares fell $5.12, or 4.6 percent, to $106.43.

Miami-based Carnival’s second-quarter profit jumped 48 percent to $561 million, or 78 cents per share. Earnings, adjusted for non-recurring gains, came to 68 cents per share.

Revenue rose 10.4 percent to $4.36 billion.

The quarterly results topped Wall Street expectations for profit of 60 cents per share and $4.33 billion in revenue.

But, the company expects profit in the third-quarter to range from $2.25 to $2.29 per share, falling well short of Wall Street expectations of $2.48 per share.

For the full year, it trimmed guidance to a range of $4.15 to $4.25 per share from a prior range of $4.20 to $4.40 per share.

Carnival shares have fallen slightly more than 4 percent since the beginning of the year, while the Standard & Poor’s 500 index has increased 3 percent. The stock has fallen slightly more than 4 percent in the last 12 months.

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