Shares Of Cruise Line Operator Carnival Sink After Q4 Report, Peers Also Fall

Shares of cruise line operator Carnival (CCL) are falling on Thursday after the company reported what was basically an in-line quarter.

Q4 RESULTS: Carnival reported fourth quarter adjusted earnings per share of 70c against a consensus of 70c, and reported Q4 revenue of $4.46B against a consensus of $4.44B. Carnival CEO Arnold Donald said, "We delivered strong fourth quarter earnings and record adjusted fourth quarter earnings to top off a record breaking year... We achieved double-digit return on invested capital in line with the target we established five years ago."

GUIDANCE NOT IMPRESSIVE: EPS guidance for Q1 and for FY19 both missed consensus estimates at the midpoint. Moreover, Carnival said it is expecting 2019 net revenue yield to be higher by just one point in 2019, which, according to a Bloomberg report, is significantly lower than analyst projections of 2.4%.

PRICE ACTION: Shares of Carnival are down over 10% to $49.44 in afternoon trading, while peers Norwegian Cruise Line (NCLH) and Royal Caribbean (RCL) are down 5.9% and 5%, respectively. 
 

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