Carnival Cruise Lines Slashes Earnings Guidance by 40% (CCL, RCL)

Following the disastrous wreck of its Costa Concordia liner, cruise operator Carnival Cruise Lines (NYSE: CCL) reported first quarter earnings this morning that were better than analysts expected, even though the company has cut its full-year guidance. Carnival, rival Royal Caribbean Cruises Ltd. (NYSE: RCL), and others have experienced a sharp drop in new bookings following the disaster off the west coast of Italy that has claimed at least 25 lives.

Carnival reported adjusted EPS of $0.02 compared with a consensus estimate for an EPS loss of -$0.08. Revenue totaled $3.6 billion compared with an estimate of $3.57 billion.

In its revised outlook for 2012, the company said that new bookings “have shown improving trends but are still running high single digits behind the prior year at slightly lower prices.” Carnival forecasts a decline in net revenue yield for the year of -2% to -4%.

Fuel price increases are expected to cost the company $0.52/share in earnings. All things considered, Carnival now forecasts 2012 EPS of $1.40-$1.70, a drop of -40% from the company’s December forecast for EPS of $2.55-$2.85/share. The consensus estimate for full-year EPS had already been lowered to $1.85.

In the first few minutes of trading this morning, Carnival’s shares are up more than 3.5% at $32.07 in a 52-week range of $28.52-$41.95.

Paul Ausick