The Carnival (NYSE:CCL) earnings report for the cruise company’s fiscal third quarter of 2019 has CCL stock taking on water Thursday. Starting off, the company reported earnings per share of $2.63 on revenue of $6.53 billion. These both beat out Wall Street’s earnings per share and revenue estimate of $2.53 and $6.16 billion for the quarter.
Here are some more highlights from the most recent Carnival earnings report.
- Earnings per share was up 11.50% YoY from $2.36.
- Revenue was increased by almost 12% from $5.84 billion in the same period of the year prior.
- Operating income for the quarter was up 5.60% from $1.79 billion to $1.89 billion.
- The Carnival earnings report also sees net income of $1.78 billion increasing 4.10% from $1.71 billion last year.
Arnold Donald, President and CEO of Carnival, has this to say.
“As a truly global cruise company, with nearly 50 percent of our guests sourced outside of the U.S., we are facing a number of current headwinds, including weakening economies affecting our Europe & Asia segment, a strong dollar and of course, the IMO 2020 regulations, and we are working to mitigate them.”
The bad news for CCL stock in the Carnival earnings report comes from its guidance update. The company points out that several factors, such as weather conditions and fuel prices, will negatively impact earnings per share for fiscal 2019.
As a result, CCL is lowering its per-share earnings range from $4.25 to $4.35 to the new range of $4.23 to $4.27. Unfortunately, this puts the high end of that range below Wall Street’s earnings per share estimate of $4.33 for the fiscal year.
CCL stock was down 8% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
