Carnival expects 1Q earnings to miss Street, lowers full-year earnings guidance
MIAMI (AP) - Carnival Corp.'s first-quarter earnings will fall short of Wall Street expectations and the cruise operator is cutting its full-year earnings outlook.
The Miami company blamed rising fuel prices and some itinerary changes in the Middle East and North Africa for the reduction to its 2011 guidance.
Carnival said Friday that its first-quarter adjusted earnings will be 12 cents per share. This is below the 20 cents per share that analysts surveyed by FactSet predict.
The cruise operator now anticipates full-year earnings of $2.50 to $2.60 per share. That's down from a prior range of $2.90 to $3.10 per share.
Analysts expect earnings of $2.94 per share for the year.
Carnival said its full-year earnings would be lowered by about 40 cents when using current spot fuel prices and currency exchange rates.
Itinerary changes in the Middle East and North Africa will trim the company's earnings for the rest of the year by about 5 cents per share.
The company's stock fell 54 cents to $39.91 in morning trading.
Carnival, which said in January that it was more than doubling its quarterly dividend, is set to report its first-quarter earnings on March 22.
The cruise operator runs 98 ships under brands including Holland America Line, Princess Cruises, Carnival Cruise Lines and Costa Cruises.