Key Takeaways
- Carnival Corporation (CCL) was the worst-performing stock in the S&P 500 after the cruise line operator predicted much bigger losses than expected in the current quarter and full year.
- For 2023, the company predicts a loss of $0.28 to $0.44 per share, at least four times more than forecasts.
- That came as Carnival posted better-than-expected first quarter results and record bookings.
- Revenue was up 173.1% to $4.43 billion, and was about 95% of the level in 2019, prior to the COVID-19 outbreak which basically shut down its operations.
Carnival Corporation (CCL) was the worst-performing stock in the S&P 500 after the cruise line operator predicted much bigger losses than expected in the current quarter and full year.
Carnival indicated it would lose $0.34 to $0.42 per share in the second quarter. Analysts were anticipating a drop of $0.28. For 2023, the company predicts a loss of $0.28 to $0.44 per share, at least four times more than forecasts.
That came as Carnival posted better-than-expected first quarter results and record bookings. The carrier reported a loss of $0.55 per share, down from $1.66 a year ago. Revenue was up 173.1% to $4.43 billion, and was about 95% of the level in 2019, prior to the COVID-19 outbreak which basically shut down its operations. Net daily spending by passengers was a record $162.96.
Record-Setting ‘Wave Season’
CEO Josh Weinstein said the company “outperformed our guidance on all measures.” He noted Carnival benefited from increased ticket prices, sustained growth in onboard revenue, and higher capacity. He added that the firm has had its highest ever quarterly booking volumes during its peak booking season, known as “wave season.”
Shares of Carnival Corporation dropped 4%, and they’ve lost more than half their value in the past 12 months.
Source: https://www.investopedia.com/carnival-guidance-sinks-shares-7371957?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral&yptr=yahoo