Today's Winners and Losers: Carnival

The cruise-ship operator cuts its outlook amid lower revenue and higher fuel costs.
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Shares of

Fossil

(FOSL) - Get Report

were among the

Nasdaq's

winners Tuesday, jumping 11% after the watch maker posted better-than-expected first-quarter results and projected second-quarter earnings above forecasts.

The company earned $9.7 million, or 14 cents a share, on revenue of $264.2 million. Analysts polled by Thomson First Call expected earnings of 12 cents a share and revenue of $244.9 million. During the year-earlier quarter, Fossil earned $23.9 million, or 32 cents a share, including a one-time tax benefit of $10 million. Year-ago revenue totaled $232.5 million.

Looking ahead, Fossil sees second-quarter earnings of 12 cents a share, 2 cents above analyts' mean estimate. For the full year, the company now expects earnings of $1.07 a share, above its previous view of $1.05 a share and ahead of the 99 cents a share that analysts project. Shares were trading up $1.71 to $17.80.

Carnival

(CCL) - Get Report

sank 10% after the cruise-ship operator cut its second-quarter and full-year outlook. The company now sees second-quarter earnings of 43 cents to 45 cents a share, down from an earlier view of 48 cents to 50 cents a share. For the full year, Carnival lowered its profit projection to earnings of $2.65 to $2.75 a share from an earlier forecast of $2.90 to $3 a share. Analysts had forecast second-quarter earnings of 46 cents a share and full-year earnings of $2.93 a share.

Carnival blamed the weaker outlook on lower revenue yields, higher fuel costs and a change in accounting. "Although we are disappointed having to lower our guidance for the year, we believe the fundamentals of our business remain sound and our long-term strategies position us well to grow our business in 2007 and beyond," the company said. Carnival shares were down $4.70 to $41.84. Shares of the company's main competitor,

Royal Caribbean

(RCL) - Get Report

, also were hit by the warning, declining $1.85, or 5%, to $38.35.

NCO Group

(NCOG)

soared 41% after the company's chief executive offered to acquire the business process outsourcing firm for $27.50 a share in cash. The offer, which was made by Michael Barrist and One Equity Partners, represents a 41% premium to Monday's closing price of $19.05.

"Given the extensive work that has already been completed by One Equity and Morgan Stanley, the fact that we have committed financing and our collective knowledge of the company and its industry, I believe we can quickly and with great certainty complete an acquisition of the company at what I think is a very attractive price," Barrist said in a letter to NCO's board. The company said its board will meet later Tuesday and form a special committee of independent directors to consider the offer. Shares recently were up $7.84 to $26.89.

Shares of

Aqua America

(WTR) - Get Report

rose 5% after the water utility laid out plans to acquire New York Water Service for $28 million in cash. Including the assumption of debt, the deal is valued at $51 million. "This acquisition expands our New York operation and provides the critical mass and economic base necessary to become one of the major water companies in New York and take advantage of other growth opportunities throughout the state," Aqua America said. The acquisition, which is expected to close by the end of the year, will immediately be accretive to earnings, the company said. Shares were trading at $22.82, up $1.01.

Shares of

AMR

(AMR)

fell 4% after the airline operator priced a $400 million public offering of newly issued shares. AMR granted the underwriter of the offering a 30-day option to purchase up to approximately $60 million worth of additional shares to cover overallotments. The company plans to use the proceeds of the offering for general corporate purposes. Shares were down 98 cents to $26.65.

Shares of

American Eagle Outfitters

(AEOS)

rose 1% after the clothing retailer posted first-quarter results that were better than expected. The company earned $64.2 million, or 42 cents a share, on revenue of $522.4 million. Analysts expected earnings of 41 cents a share on revenue of $518.1 million. During the year-earlier quarter, the company earned $55.3 million, or 35 cents a share, on revenue of $456.5 million.

American Eagle Outfitters sees second-quarter earnings of 39 cents to 41 cents a share. Analysts project earnings of 38 cents a share. Shares were trading up 47 cents to $33.64.

NYSE

volume leaders included

Elan

(ELN)

, up $1 to $17.74;

Home Depot

(HD) - Get Report

, down $1.34 to $39.16;

Lucent Technologies

(LU)

, up 2 cents to $2.63;

General Electric

(GE) - Get Report

, up 20 cents to $34.76;

Pfizer

(PFE) - Get Report

, down 2 cents to $24.87;

Advanced Micro Devices

(AMD) - Get Report

, down $1.22 to $29.90;

Nortel Networks

(NT)

, down 2 cents to $2.56;

Time Warner

(TWX)

, up 7 cents to $17.61; and

Wal-Mart

(WMT) - Get Report

, up 76 cents to $48.19.

Nasdaq volume leaders included

JDSU

(JDSU)

, up 11 cents to $2.87;

Neurocrine Biosciences

(NBIX) - Get Report

, down $30.61 to $24.02;

Intel

(INTC) - Get Report

, down 7 cents to $19.25;

Microsoft

(MSFT) - Get Report

, down 11 cents to $23.04;

Sirius Satellite Radio

(SIRI) - Get Report

, up 3 cents to $4.27;

Cisco Systems

(CSCO) - Get Report

, down 13 cents to $20.43;

Apple Computer

(AAPL) - Get Report

, down $1.65 to $66.14; and

Sun Microsystems

(SUNW) - Get Report

, down 7 cents to $4.68.