Archive

Carnival shares sink on outlook, cost concerns | TribLIVE.com
U.S./World

Carnival shares sink on outlook, cost concerns

The Associated Press
EarnsCarnival25956jpg4ae91
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.

TribLIVE commenting policy

You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.

We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.

While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.

We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers

We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.

We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.

We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.

We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.