Carnival: They've got the fun, but no one is buying

Filed under: Earnings reports, Bad news, Newsletters, Carnival Corp (CCL), Newell Rubbermaid (NWL), Stocks to Sell, Recession

Wednesday, consumer products maker Newell Rubbermaid (NYSE: NWL) delivered some bad news to investors when it slashed its current quarter profit outlook rather significantly.

It took the Street completely by surprise, and the shares got hammered to the tune of 27%.

Then yesterday, one of the quintessential companies that relies on consumer spending, Carnival Corp. (NYSE: CCL), announced that it too has lowered its profit guidance for 2009, to a range of $2.25 to $2.75 per share from its previous range of $2.50 to $3 per share.

The company said it expects full-year net revenue yields to fall 6% to 10% on a constant dollar basis compared with previous guidance of a drop of 1% to 5%.

Despite the weak outlook, the shares were up on a day when not much else was rising.

What gives?

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Carnival: They've got the fun, but no one is buying originally appeared on BloggingStocks on Fri, 19 Dec 2008 14:28:00 EST. Please see our terms for use of feeds.

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