MARKET REPORT: Carnival cruise company navigates turbulent waters

Not everything is a bed of roses for the Carnival cruise company.

The company reported record third-quarter revenue of £6bn amid growing demand for offshore travel.

But its profit forecast for the fourth quarter of the year did not meet market expectations, causing carnival actions fell 4.2 per cent, or 53.5p, to 1,218p.

The FTSE 250 group expects to report profits of £850 million in the final three months of this year.

While that would represent a 20 per cent increase on the same period last year, it will be below the £860m forecast by analysts.

The fourth-quarter earnings outlook took some shine off what was otherwise an excellent update.

Hargreaves Lansdown analyst Derren Nathan said: “Despite the positive numbers, it appears investors wanted more as today’s stock chart looks more like an ocean storm than an island cruise.”

The FTSE 100 fell 1 per cent, or 83.81 points, to 8,236.95 and the FTSE 250 lost 0.9 per cent, or 187.37 points, to 21,053.19.

Rising tensions in the Middle East appeared to drag down airline stocks. Easyjet fell 3.7 per cent, or 20.2 pence, to 520 pence, Wizz Air lost 4.8 per cent, or 73 pence, to 1,450 pence and British Airways owner IAG fell 3.3 per cent, or 6.9p, to 205.4p.

Investment firm Fidelity China continued its impressive rally, sparked last week by Beijing’s plans to revive the world’s second-largest economy.

The shares, which rose 21 per cent last week, rose 3.3 per cent, or 7p, to 221p.

Private equity firm 3i Group has come under pressure after it emerged that short seller ShadowFall, which has made a multi-million-dollar bet, believes its biggest investment, Action, is overvalued. Last week, 3i said sales at the Dutch discount retailer have risen 21 per cent to £7.7bn so far this year.

The shares fell 2.5 per cent, or 84p, to 3,305p yesterday.

Another private equity giant, Intermediate Capital, endured a difficult session after JP Morgan downgraded its rating. The shares fell 4.5 per cent to 104 pence at 2,228 pence.

Engineering firm Smiths Group also fell into the red after Barclays downgraded its rating from “overweight” to “equal weight” and cut its price target by 20p.

The shares fell 4.8 per cent, or 84 pence, to 1,677 pence. Oil rig builder Petrofac has been brought down by rising half-year losses. The stock slumped 25.7 per cent, or 5.03p, to 14.55p.

Playtech improved its annual forecasts after good performances in Mexico, Colombia, Canada and the United States.

The gambling software group, which will sell its Italian betting group Snaitech to Paddy Power owner Flutter (down 1.3 per cent, or 225p, to 17,575p) for £1.9bn pounds, expects 2024 earnings to beat analyst expectations.

Profits rose 11 per cent to £203 million in the first half of 2024, while sales rose 5 per cent to £756 million. The shares fell 1 per cent, or 7p, to 752p.

Defense company Qinetiq is selling its site at Cody Technology Park (CTP) in Farnborough, Hampshire, to investment firm Tristan Capital Partners for £112 million. The shares rose 0.1 per cent, or 0.4p, to 449.4p.