Shares of cruise operator Carnival (NYSE:CCL) were trading down more than 6% on Tuesday morning after the company cut its full-year profit forecast due to higher fuel prices and the impact of a strong dollar.
Carnival reported fiscal first-quarter adjusted earnings of $0.49 per share on revenue of $4.7 billion, beating expectations for $0.44 per share in earnings on sales of $4.31 billion. But the market was more focused on the company's guidance for the rest of the year. Carnival said it expects second-quarter adjusted EPS between $0.56 and $0.60, short of the $0.72 analyst estimate.
For the full year, Carnival expects earnings of $4.35 to $4.55 per share. The company had previously guided for $4.50 to $4.80.
While energy and forex issues are weighing on the business, demand remains strong. Carnival said it expects constant-currency net cruise revenue to be up about 5.5% in fiscal 2019 on cumulative advanced bookings that are trending up year over year.
Check out the latest earnings call transcript for Carnival.
Shares of Carnival have been taking on water for some time now, trading down nearly 20% over the past year. The company is doing a great job of attracting customers for its cruises and offers a tantalizing 3.8% dividend yield. But right now, investors seem more focused on the issues that are weighing on profitability.