Carnival shares sink on outlook, cost concerns
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.