Cruise ship giant Carnival (NYSE:CCL) underperformed a strong market last month as the stock fell 11%, versus a 7% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.
The slump added to a weak period for shareholders, with the stock in negative territory so far in 2019, compared with an over 15% gain in the broader market.
Investors reacted harshly to the company's fiscal second-quarter report that included its second consecutive guidance downgrade. While Carnival's ships sailed at capacity and saw robust onboard spending, future bookings were weak in a few geographic markets, leading the company to project flat net cruise yields, a sharp slowdown from 2018's 4% increase.
CEO Arnold Donald and his team expressed confidence in late June that the business will quickly adjust to the new industry dynamics, in part by relocating ships in more high-demand areas like the Caribbean. But Carnival will likely come up well short of its goal of double-digit annual earnings gains this year as profits are projected to rise by just 5%, versus 12% last year.