Carnival: Q2 Profits Plunge 93%, Shares Fall

The cruise operator is trying to recover from the Costa Concordia wreck

   

Carnival: Q2 Profits Plunge 93%, Shares Fall

Carnival (NYSE:CCL) reported earnings of $14 million for its fiscal second quarter, down 93% from $206 million during the same time last year.

The company continues to experience consumer fallout from the sinking of the Costa Concordia along the Italian coast in January, which killed at least 25 passengers.

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EPS adjusted for fuel derivatives losses came in at 20 cents. Wall Street had been looking for 8 cents, Reuters noted.

Shares of Carnival slid more than 2% in Friday afternoon trading, falling below $34.

The cruise line operator said fuel prices rose 12% during the quarter, but it expected those prices to fall in coming months.

Carnival increased its outlook for the rest of the year, predicting adjusted EPS of between $1.80 to $1.90. That was up from previous estimates of between $1.40 and $1.70.

Analysts were disappointed with the guidance, which relied mostly on lower fuel prices instead of rising demand, but noted that recovering from the publicity surrounding the Costa Concordia disaster would take time.


Article printed from InvestorPlace Media, http://investorplace.com/2012/06/carnival-q2-profits-plunge-93-shares-fall/.

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