Key Points
- Carnival Shares fell on Monday after the company's earnings outlook for the current quarter fell short of expectations.
- The cruise line operator said a Slower-than-expected decline in inflation would drive up costs.
- Carnival's second-quarter sales hit a record high and its loss was lower than estimated.
Carnival (CCL) was the worst-performing stock in the S&P 500 on Monday, as shares fell 7.6% after the cruise line's earnings outlook for the current quarter missed expectations. Shares of rivals Norwegian Cruise Line Holdings (NCLH) and Royal Caribbean (RCL) also lost ground.
Carnival forecasts third quarter of fiscal 2023 earnings per share (EPS) in the range of $0.70 to $0.77. Analysts were looking for a profit of $0.76.
CFO David Bernstein said that A slower-than-expected decline in inflation for port operations, freight and crew travel caused the company to raise its spending outlook.
Who Came As A Cruise Line reported record second-quarter revenue of $4.91 billion and a loss of $0.32. Both were better than estimates.
CEO Josh Weinstein said that Carnival had benefited from higher ticket prices, “even while maintaining record levels of onboard spending, building occupancy and increased capacity”.
Despite Monday liquidation, the Carnival shares are up more than 75% year-to-date. ” />
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Source: investopedia.com