Carnival PLC (LON:CCL) (NYSE:CCL) saw its shares drop on Tuesday after the cruise operator cut its annual profit forecast although it reported above forecasts first-quarter results, blaming higher fuel prices and the impact of a strong dollar.
The dual-listed, FTSE 100 index constituent in London said it now expects 2019 adjusted earnings per shares to be $4.35 to $4.55 per share, compared with its previous forecast for $4.50 to $4.80.
READ: Carnival posts strong fourth-quarter earnings, 2019 bookings considerably ahead but prices flat
Carnival’s first-quarter revenue rose to $4.67bn, however, up from $4.23bn a year earlier and above forecasts of €4.31bn.
The group’s first-quarter adjusted earnings were also better than the mid-point of December guidance by $0.07 per share at $0.49 per share.
Arnold Donald, Carnival’s president and chief executive officer commented: "First quarter earnings included revenue growth from higher capacity and improved onboard spending, offset by the timing of cost increases and a drag from fuel price and currency compared to the prior year.”
He added, "For the full year, our earnings guidance now reflects $155mln, or $0.22 per share, from fuel price and currency moving against us. Operationally, we continue to expect revenues and adjusted earnings per share improvements in line with our December guidance."
In early afternoon trading in London, Carnival shares were 5.7% lower at 3,914p.