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Cruise Stocks Dragged Down by Carnival's 3Q Results

Dow Jones2022-09-30

 

By Will Feuer

 

Shares of cruise operators tumbled in morning trading on Friday after Carnival Corp. posted a larger-than-expected loss and disappointing revenue for the fiscal third quarter.

Carnival stock plunged more than 20%, to $7.30 a share, the lowest price seen for that stock since the early 1990s.

Shares of Royal Caribbean Cruises Ltd. fell almost 11%, to $39.02 a share, while Norwegian Cruise Line Holdings Ltd. stock fell 15%, to $11.78 a share.

Carnival has more exposure than its rivals to the mass-market cruising category, where customers could be more affected by inflation than those in higher-end categories. The company has been discounting tickets and spending more on advertising to pack ships.

As a result, the company's quarterly revenue has surged from a year ago, when many of Carnival's ships weren't operating due to pandemic-related restrictions in many parts of the world. The company's quarterly losses have narrowed significantly, as well.

For the three months ended Aug. 31, the company posted a loss of 65 cents a share, narrowing from the loss of $2.50 a share it posted a year earlier. But analysts were looking for more progress, with the average expecting a loss of 9 cents a share, according to FactSet.

Revenue rose to $4.31 billion from $546 million a year earlier. But analysts surveyed by FactSet were expecting $4.9 billion.

"We can do better," CEO Josh Weinstein said on a conference call with analysts.

 

Write to Will Feuer at Will.Feuer@wsj.com

 

(END) Dow Jones Newswires

September 30, 2022 10:37 ET (14:37 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

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  • PYee
    ·2022-09-30
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