© Reuters. The Carnival cruise ship Sunrise is seen docked at Miami Port, in Miami, Florida, U.S., June 18, 2022. Picture taken with a drone. REUTERS/Marco Bello
(Reuters) – Carnival (NYSE:) Corp on Friday missed Wall Street estimates for quarterly revenue as inflation forced consumers to restrain from splurging on cruise travel, sending its shares down 7% in premarket trading.
The company also said it expects breakeven to slightly negative adjusted earnings before interest, taxes, depreciation, and amortization for the fourth quarter ending Nov. 30.
Carnival, which has a higher exposure to the mass-market category that’s more affected by inflation, has been heavily discounting and ramping up advertisements to attract passengers after a long pandemic-led interval.
The cruise operator’s revenue in the third quarter ended August 31 rose to $4.31 billion from $546 million a year earlier, but missed analysts’ average estimate of $4.90 billion, according to IBES data from Refinitiv.
Net loss narrowed to $770 million, or 65 cents per share, from $2.84 billion, or $2.50 per share, a year earlier.
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