* Third-quarter adj. earnings/share $1.38 vs est $1.30
* Sales $4.73 bln vs est $4.65 bln
* Expects fourth-quarter net yields to fall 3 to 4 pct
* Shares down as much as 8 pct in morning trading
By Siddharth Cavale
Sept 24 Carnival Corp warned it could
report an adjusted loss for the current quarter, after posting a
30 percent fall in third-quarter profit due to a series of
headline-grabbing mishaps on its cruise ships.
Shares of the world's largest cruise operator fell as much
as 8 percent in morning trading.
The company, which operates the Carnival, Holland America
and Costa cruise lines, said it expects adjusted per-share
results for the current quarter to be in the range of a loss of
3 cents to a profit of 3 cents. Analysts on average were
expecting earnings of 9 cents per share.
Carnival also said it expects fourth-quarter net revenue
yields, which blend ticket sales and money spent onboard, to
fall 3 to 4 percent on a constant currency basis.
Morningstar analyst Jamie Katz called the outlook
disappointing and said investors were expecting the company to
lap comparable year-over-year numbers after two really weak
"What the commentary indicates to us is that that's not the
case," the analyst said.
Katz said the company may be losing share to competitors
such as Royal Caribbean Cruises and Norwegian Cruise
Line Holdings, or customers may be looking for better
A spate of mishaps on the company's cruise ships that
started in spring has dented demand for Carnival's vacation
cruises and slashed revenue per cabin.
In March, the company cut short a Caribbean cruise after an
engine problem idled its Carnival Dream ship in St. Maarten. A
month earlier, its Carnival Triumph was adrift for days in the
Gulf of Mexico following an engine fire, and passengers
described an overpowering stench as toilets overflowed.
Net ticket yields fell 4.6 percent in the third quarter
while yields from onboard entertainment fell about 1 percent,
Chief Financial Officer David Bernstein said on a post-earnings
conference call. Net revenue yields, a blend of the two, was
down 3.8 percent on a constant currency basis.
Excluding Carnival fleet, cumulative occupancies for the
fourth quarter are lower despite prices being kept at last
year's levels, Chief Operating Officer Howard Frank said.
"Carnival Cruise Lines occupancy for the fourth quarter are
lower at lower prices," he added. The company's Carnival cruise
lines represent about 30 percent of the company's fleet of over
Carnival Corp reported net income of $934 million, or $1.20
per share, for the quarter ended Aug. 31, down from $1.33
billion, or $1.71 per share, a year earlier.
Excluding one-time items, the company earned $1.38 per share
and topped analysts' expectations by 8 cents, helped by lower
non-fuel cruise costs and the timing of advertising expenses.
Revenue rose marginally to $4.73 billion and beat Wall
Street's expectations of $4.65 billion, according to Thomson
Carnival's shares were trading at $34.86, down 6.8 percent,
in midday trading on the New York Stock Exchange on Tuesday.