Carnival Shares Drop as Cruise Line Cuts Outlook Due to Higher Fuel Prices

Carnival Shares Drop

Carnival Corp. (CCLGet Report) shares declined Thursday after the Miami cruise line cut its fiscal 2019 profit outlook due to factors including an increase in fuel prices.

Carnival shares dropped 8.6% to $43.95 Thursday.

The company expects the recent jump in fuel prices to cut profit by 8 cents a share.

Carnival also said weather-related disruptions, tensions in the Arabian Gulf and a ship-delivery delay are expected to cut 4 cents to 6 cents a share.

The fiscal year’s adjusted earnings now should range $4.23 to $4.27 a share versus Carnival’s previous guidance of $4.25 to $4.35. Analysts surveyed by FactSet were expecting $4.33 a share.

For the third quarter ended Aug. 31 the company reported adjusted earnings of $2.63 a share on revenue of $6.5 billion.

Analysts were expecting $2.53 a share on revenue of $6.16 billion.

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