Carnival issues brutal profit warning on full-year EPS

Cruise ship operator Carnival, the world's largest, issued a brutal profit warning overnight for its full-year earnings per share, primarily as a result of lower net revenue yield expectations due to its current cruise ticket pricing.

Hence, the company now sees full year 2013 revenue yields down by between 2% to 3%, versus prior guidance for them to be flat.

Further, greater than expected voyage cancellations and selling and administrative costs will see its earnings per share (EPS) reduced by an additional 10 cents.

As a result of all of the above, full year EPS is now being forecast to come in a range of between $1.45 and $1.65, versus the between $1.80 to $2.10 previously anticipated.

Even so, second quarter guidance in a range of $0.04 to$0.08 per share has been maintained despite slightly lower yield expectations.

Nevertheless, that same pricing has resulted in higher booking volumes, the company explains.

The firm will provide updated guidance for the second half of the year, to take into account current spot prices for fuel and exchange rates during its regular earnings call to be held in late June 2013.

Shares of Carnival were down by 339p at 2,075p by 08:06.

AB