Carnival Corporation (NYSE: CCL) stock has provoked much consternation on the part of shareholders as of late. Shares peaked in early 2018, and they've gained just 6% during the last three years, although they've advanced 16% on a total return basis during this period thanks to a generous dividend (which currently yields 4%). The cruise-line operator is expected to unveil its fiscal third-quarter 2019 earnings on Sept. 26, and angst and trepidation are in the air. Company shares have repeatedly sold off after earnings reports during the last two years, and investors are bracing for another potential sell-off due to external factors.
Carnival disappointed shareholders last quarter by revising fiscal 2019 earnings per share (EPS) downward to between $4.25 and $4.35, from an initial range of $4.35 to $4.55. As I discussed in my earnings recap in June, the slimmed outlook stemmed from four factors: U.S. regulatory changes which have crimped cruise sailings to Cuba; technical problems with the company's Vista vessel, which caused voyage disruptions in the second quarter; headwinds from fuel prices and foreign currency translation; and geopolitical uncertainties related to Brexit.
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