Key facts
- Carnival Corp. forecasts third-quarter profit below analyst expectations.
- Elevated fuel prices are cited as the reason for the lower profit forecast.
- The cruise operator anticipates adjusted earnings per share of about $1.35.
- Analysts had estimated adjusted earnings per share of $1.42.
- Carnival's shares dropped approximately 10% in premarket trading.
Carnival Corp. is projecting third-quarter profits that are expected to be lower than what analysts had anticipated. The cruise operator has forecast adjusted earnings per share to be around $1.35. This figure falls short of the $1.42 per share that analysts had estimated. The primary reason cited for this lower-than-expected profit forecast is the elevated cost of fuel. The impact of this news on the company's market performance was immediate, with Carnival's shares dropping approximately 10% in premarket trading following the announcement. This financial outlook suggests that rising operational expenses, particularly for fuel, are posing a significant challenge to Carnival's profitability in the current quarter.