Carnival Corp Q3 Earnings Fall 30% Despite Higher Revenues; Adjusted EPS Beats Views (CCL)

Early on Tuesday, cruise operator Carnival Corporation (CCL) reported a decline in third quarter profits, despite a slight rise in revenues. Nonetheless, both adjusted earnings and revenues topped Wall Street estimates. However, shares of the company plummeted in early morning trading after the company issued a weak fourth quarter outlook.

The Miami, Florida-based company posted a third quarter net income of $934 million, or $1.20 per share, down from $1.33 billion, or $1.71 per share, earned in the same period a year ago.

These quarterly results included $176 million and $27 million in impairment charges. Excluding these one-time items, Carnival posted an adjusted net income of $1.07 billion, or $1.38 per share, in the third quarter, down from $1.19 billion, or $1.53 per share, last year. According to analysts polled by Thomson Reuters, the company was expected to earn an adjusted $1.30 per share in the quarter.

Carnival’s quarterly revenues increased to $4.73 billion in the third quarter, up from the $4.68 billion in revenues posted in the prior year quarter. On average, analysts were expecting the company to see $4.65 billion in revenues.

Looking ahead to the fourth quarter, Carnival expects to see earnings in the range of a loss of 3 cents per share to a profit of 3 cents per share, versus last year’s fourth quarter adjusted net earnings of 14 cents per share. Analysts are expecting the company to see earnings of 9 cents per share in the fourth quarter.

For the full year, Carnival expects adjusted earnings to come in between $1.51 and $1.57 per share, versus the prior outlook of earnings between $1.45 and $1.65 per share. Analysts are expecting the company to see earnings of $1.55 per share in fiscal 2013.

Carnival Corp shares were down $2.33, or 6.23%, during early morning trading on Tuesday. The stock is down 4.84% year-to-date.