* Forecasts $1.38-$1.44/share for Q3 vs est $1.51
* Raises full-year profit forecast to $1.60 to $1.75/share
* Shares fall about 2 pct (Adds details, share movement)
June 24 (Reuters) - Carnival Corp, the world’s largest cruise operator, forecast a weaker-than-expected adjusted profit for the third quarter, citing increased competition in the Caribbean and higher costs, sending its shares down 2 percent in early trading.
The company, which operates the Carnival, Holland America and Costa cruise lines, forecast an adjusted profit of $1.38-$1.44 per share for the current quarter, when the company earns a lion’s share of its earnings due to peaking demand in the summer.
Analysts on average were expecting $1.51 per share, according to Thomson Reuters I/B/E/S.
The company, however, raised its full-year adjusted profit forecast to $1.60 to $1.75 per share from $1.50-$1.70.
Carnival said it expects third-quarter net revenue yields, which blend ticket sales and money spent onboard, to be flat to down 1 percent on a constant currency basis due to “significant industry capacity increase in the Caribbean.”
About 35 percent of the company’s passenger capacity was in the Caribbean in the year ended November.
Carnival’s net income rose to $106 million, or 14 cents per share, in the second quarter ended May 31, from $41 million, or 5 cents per share, a year earlier.
Excluding items, the company earned 10 cents per share.
Revenue rose 4 percent to $3.63 billion.
Analysts on average had expected earnings of 2 cents per share on revenue of $3.61 billion, according to Thomson Reuters I/B/E/S.
Carnival’s shares were trading at $38.57 on the New York Stock Exchange on Tuesday. (Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Don Sebastian)