Ambassadors International falls to 52-week low as Q3 profit declines
Shares of Ambassadors International, Inc. (Nasdaq: AMIE) have submerged to a new 52-week low on news after the close on Tuesday that the event company suffered 95% decline in third-quarter earnings.
Net income for the three months ended Sept. 30 was $0.4 million, or $0.03 per share, compared with a net income of $7.6 million, or $0.66 per share a year earlier. Four analysts polled by Thomson Financial were expecting Newport Beach, Calif.-based Ambassadors International to report earnings of $0.56 per share.
Meanwhile, revenue increased 66% to $95.6 million, from $57.6 million during the third-quarter of 2006. Ambassadors International, a cruise, marine, and travel and event company, attributed the rise in additional revenues from the acquisition of Windstar Cruises in April. Its fleet of ships has increased to nine vessels from four a year earlier.
However, the increase in revenue was offset by an 83.8% jump in operating costs, which came to $90.17 million from $49.07 million a year earlier.
At 3:57 p.m. ET, shares of Ambassadors International (AMIE) had lost $3.65, or 20%, to $14.80. The previous 52-week low of $18.02 was set on Nov. 6. The 52-week high of $48.60 was touched on Dec. 26, 2006.
