While results from cruise ship operator Carnival beat most brokers' forecasts, the shares sunk 6 per cent after it delivered EPS guidance for next year of $2.20 to $2.40 - some way below expectations.
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The key culprit for the disappointment was lower-than-expected revenue yield predictions. The company's caution about its prospects reflects weakening demand from Germany, the UK and southern Europe as well as concerns about the potential impact of fiscal cliff issues in the US. Like other holiday companies, booking visibility is limited so a lot of uncertainty remains.