This Day On The Street
Continue to site
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

Carnival Hit by Fuel Costs, Outlook

MIAMI ( TheStreet) -- Carnival (CCL - Get Report) 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CCL $49.51 0.94%
CUK $51.13 1.10%
RCL $78.69 1.70%
AAPL $93.66 -0.09%
FB $118.57 0.84%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs