Carnival (CCL - Get Report) declined sharply Thursday after the cruise line company cut its outlook for the fiscal year, saying that "recent booking trends have been impacted by ongoing geopolitical and macroeconomic headwinds" that have affected its Continental European brands.
"We continue to expect higher yields in our North America and Australia brands offset by lower yields in our Europe and Asia brands for the remainder of the year," Carnival said in a statement Thursday.
Carnival said it expects adjusted fiscal-year earnings of $4.25 to $4.35 a share, compared with guidance in March of $4.35 to $4.55.
The company said voyage disruptions related to Carnival Vista will have a financial impact of about 8 cents to 10 cents a share, while Carnival will take a hit of 4 cents to 6 cents a share from the U.S government's policy change on travel to Cuba.
"While the company was able to quickly adjust its itineraries to provide guests with attractive alternative vacation experiences, the suddenness of the regulatory change to this high yielding destination has led to a near-term impact on revenue yields," Carnival said.
For the fiscal second quarter, Carnival posted adjusted earnings of 66 cents a share, 5 cents higher than analysts' forecasts. Revenue of $4.84 billion topped estimates of $4.54 billion.
Carnival shares slumped 9.84% in trading Thursday to $47.64.