Carnival warns of stormy seas ahead
Cruise line operator Carnival Corp. warned on Thursday morning that its fiscal year 2019 outlook will be below its previous expectations due to a jump in fuel prices, sending shares sharply lower.
“Due to an $0.08 impact from the recent spike in fuel prices caused by geopolitical events, we are reducing our full year guidance for 2019 by $0.05 per share," Carnival President and CEO Arnold Donald said in the company’s third-quarter earnings release.
Carnival said rising fuel prices will shave 4 cents to 6 cents per share off its prior guidance. The company now expects to earn $4.23 to $4.27 a share, down from its June guidance of $4.25 to $4.35.
Carnival reported adjusted earnings of $2.63 a share on revenue of $6.5 billion.
Looking ahead to 2020, Carnival says cumulative advanced bookings for the first half of the year were ahead of the prior year, but booking volumes and prices have been running weaker since June.
CLICK HERE TO READ MORE ON FOX BUSINESS
Shares of the cruise line operator were down 10.6 percent this year, including Thursday's loss.