Carnival whipsaws despite strong quarter, $1 billion buyback

Carnival Miracle cruise ship
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Carnival Miracle cruise ship

Carnival shares traded in a wide range on Tuesday, after the cruise line reported second-quarter earnings and a $1 billion buyback authorization.

The stock briefly rose as much as 5.7 percent, before ending the day slightly higher.

The firm reported a $3.7 billion second-quarter revenue, beating Reuters analysts' estimates of $3.68 billion. Carnival also reported adjusted earnings of 49 cents a share, above a Reuters estimate of 39 cents.

The company also forecast full-year earnings of between $3.25 and $3.35 per share, while its March estimate rested at between $3.20 and $3.40 per share.

More advance bookings for cruise vacations and higher ticket prices helped Carnival set its full-year guidance up approximately 3.5 percent versus 3 percent earlier in March.

"Our ongoing effort to drive demand for our brands in excess of our measured capacity growth has led to increased revenues and helped maintain the mid-point of our full year earnings guidance despite the recent currency movements and rises in fuel prices that combined represent a negative $0.17 per share," said Arnold Donald, the company's CEO, in a release.

Since last October, the Miami-based company repurchased nearly $1.9 billion in common stock.

Carnival shares closed at $43.73 on Tuesday. So far this year, its stock dropped nearly 20 percent.

CCL year to date: