It’s not surprising that Carnival’s 2012 earnings forecast falls short of expectations
The Carnival Cruise Splendor relocates to the Tenth Avenue Marine Terminal in San Diego. Port of San Diego / Flickr.com
Carnival has dealt with PR disasters from the Costa Concordia crash and a Norovirus outbreak to angry drag stars throughout 2012. The company is no doubt looking forward to the new start that 2103 will bring.
Carnival Corp., the world’s biggest cruise line operator, fell the most in 11 months after providing a full-year earnings forecast that fell short of what analysts anticipated.
The shares dropped 4.2 percent to $37.41 at 9:36 a.m. in New York after the Miami-based company said earnings will rise to as much as $2.40 a share next year, excluding some items. Analysts predicted $2.46, the average of estimates compiled by Bloomberg.
The European brands continue to suffer from a deteriorating economy, Carnival said in a statement. The North America business and Costa will benefit from a recovery in ticket prices and occupancy.
The drop in shares today is the biggest intraday decline since Jan. 17, the first day of trading after Carnival’s Costa Concordia ran aground off the coast of Italy. Carnival shares had gained 20 percent this year through yesterday, while the Standard & Poor’s 500 Index rose 14 percent.
Editors: Cecile Daurat and Niamh Ring.
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