This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Carnival Hit by Fuel Costs, Outlook

MIAMI (TheStreet) -- Carnival (CCL) shares tumbled Tuesday morning after the cruise ship operator reported a 13% quarterly profit decline as high fuel costs cut into its revenue, and revised its earnings outlook.

Carnival Cruise
Carnival Cruise Line vessels Sensation and Ecstasy

Carnival said it expects to book a 2011 profit in the range of $2.55 to $2.65 per share, down from its December guidance range of $2.90 to $3.10.

The Miami operator of Carnival Cruise Lines, Princess Cruises and Costa Cruises, among others, first announced an earnings outlook revision earlier this month when it pre-announced disappointing first-quarter earnings, saying higher fuel prices would pressure its results.

Tuesday's forecast raised that range by a nickel, citing currency fluctuations and changes in spot prices for fuel. Even so, Carnival cut its outlook for net revenue yield growth for 2.5% to 3.5%.

Current quarter earnings were forecast in a range of 20 cents to 24 cents per share, lower than the 32 cents per share analysts had expected.

Carnival shares fell 4.1% to $39.34 amid heavy trading Tuesday morning. Nearly 5.5 million shares changed hands two hours in the trading session, compared with their average daily volume of just 4.1 million.

"Despite the uncertain world events that have unfolded during our peak booking period, we have experienced a solid wave season," said CEO Micky Arison. "Ticket prices for the peak summer season remain particularly strong."

For the quarter ended Feb. 28, Carnival booked a profit of $152 million, or 19 cents per share, down 13.1% from the year-earlier period, matching analysts' consensus call.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,563.30 -317.06 -1.88%
S&P 500 1,930.67 -39.40 -2.00%
NASDAQ 4,369.7730 -93.1290 -2.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs