Carnival Corp. shares are declining Thursday, following a lowering of its fiscal 2019 profit outlook.
Carnival has predicted that full fiscal year’s adjusted earnings would now range between $4.23 and $4.27 a share, versus its prior guidance of $4.25 to $4.35. Analysts surveyed by FactSet had forecasted $4.33 a share.
The cruise line company anticipates that the recent climb in fuel prices would reduce profit by -8 cents a share. Carnival also cited weather-related headwinds, tensions in the Arabian Gulf and a delay in ship-delivery as factors that are expected to cut -4 cents to -6 cents a share.
For the third quarter ended Aug. 31, Carnival reported adjusted earnings of $2.63 a share, which was higher than analysts’ expected $2.53. Its revenue for that quarter came in at $6.5 billion, compared to analysts’ estimate of $6.16 billion.