In its outlook for the third quarter, the company expects net revenues to fall 3.5% to 4.5% year over year and fuel costs to rise 8.5% to 9.5%. Adjusted EPS for the quarter is forecast at $1.25 to $1.33, well below last year’s total of $1.53 per share. The consensus estimate calls for adjusted EPS of $1.38 on revenues of $4.68 billion.
For the full year Carnival expects adjusted EPS of $1.45 to $1.65 compared with last year’s total of $1.88 per share. Net revenue is also expected to be 2% to 3% lower in 2013.
The company’s CEO said:
The level of quality, variety and innovation available throughout our fleet has never been greater and our guests are reaping the benefits of truly exceptional vacation values. We are working to more broadly communicate that message through stepped up consumer and trade marketing efforts, as well as strengthened engagement of our travel agent partners. We believe these initiatives, combined with slower supply growth, will lead to increased yields.
Carnival’s profitability in the quarter was better than expected but still far weaker than the same period a year ago. Costs are rising and revenues are not keeping pace. The company also reported that $2 billion of its long-term debt is now classified as current. A refinancing or secondary stock offering might be something to look for in the near future.
Carnival’s shares are up 1.8% in premarket trading this morning, at $33.84 in a 52-week range of $31.65 to $39.95. Thomson Reuters had a consensus analyst price target of around $36.70 before today’s report.
Take Charge of Your Retirement: Find the Right Financial Advisor For You in Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding professional guidance—and we’ve made it easier than ever for you to connect with the right financial advisor for your unique needs.
Here’s how it works:
1️ Answer a Few Simple Questions
Tell us a bit about your goals and preferences—it only takes a few minutes!
2️ Get Your Top Advisor Matches
This tool matches you with qualified advisors who specialize in helping people like you achieve financial success.
3️ Choose Your Best Fit
Review their profiles, schedule an introductory meeting, and select the advisor who feels right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.