Blacknarwhal
Let's Go Brandon!
"What do you MEAN, 'no one wants to spend huge amounts of cash to be penned up on a ship with a bunch of other people, catch their diseases, and possibly get beaten up in a nightclub brawl'??"
Fair use cited so on and so forth. Charts left in because charts.
www.zerohedge.com
by Tyler Durden
Friday, Sep 30, 2022 - 01:00 PM
Carnival Corp. shares crashed Friday morning as fuel prices and inflation delayed its return to profitability. There's concern that the cruise ship rebound post-Covid has stalled amid waning consumer demand.
The world's largest cruise ship operator missed EPS and EBITDA estimates for the third quarter. It expects advance bookings for the fourth quarter to fall below average trends -- a surprise to estimates just weeks ago.
The cruise ship operator has been discounting tickets and increasing advertisements to attract passengers. Still, the occupancy rate for the third quarter was 84%, coming in short of the 86.5% average estimate analysts surveyed by Bloomberg.
Similarweb travel and leisure analyst Jim Corridore told Reuters the downward revision to the fourth quarter is not as much due to slowing demand or revenue problems but rather soaring costs to operate vessels, such as higher fuel, food, and labor prices.
Carnival expects 2023 bookings "slightly above the historical average and at considerably higher prices" than 2019 when normalized for future cruise credits.
The demand outlook is very ominous. Here's what the Miami-based company said:
Also, several of Carnival’s bonds were the largest decliners in the junk bond space. Equity and bond prices for other cruise liners also fell.
This is the latest example of consumer-sensitive companies warning about downbeat earnings, inflationary woes, and weakening consumers.
Fair use cited so on and so forth. Charts left in because charts.
Carnival Shares Crash As Cruise Rebound Sinks | ZeroHedge
ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
www.zerohedge.com
Carnival Shares Crash As Cruise Rebound Sinks
by Tyler Durden
Friday, Sep 30, 2022 - 01:00 PM
Carnival Corp. shares crashed Friday morning as fuel prices and inflation delayed its return to profitability. There's concern that the cruise ship rebound post-Covid has stalled amid waning consumer demand.
The world's largest cruise ship operator missed EPS and EBITDA estimates for the third quarter. It expects advance bookings for the fourth quarter to fall below average trends -- a surprise to estimates just weeks ago.
The cruise ship operator has been discounting tickets and increasing advertisements to attract passengers. Still, the occupancy rate for the third quarter was 84%, coming in short of the 86.5% average estimate analysts surveyed by Bloomberg.
Revenue in the third quarter increased to $4.31 billion from $546 million in the same quarter last year but missed Wall Street analysts' average estimate of $4.90 billion, according to IBES data from Refinitiv. Net losses were $770 million, or 65 cents per share, from $2.84 billion, or $2.50 per share, a year earlier. Revenue has missed expectations for ten consecutive quarters.
Similarweb travel and leisure analyst Jim Corridore told Reuters the downward revision to the fourth quarter is not as much due to slowing demand or revenue problems but rather soaring costs to operate vessels, such as higher fuel, food, and labor prices.
Carnival expects 2023 bookings "slightly above the historical average and at considerably higher prices" than 2019 when normalized for future cruise credits.
The demand outlook is very ominous. Here's what the Miami-based company said:
The stock crashed as much as 23% this morning to levels not seen since 1993.
Also, several of Carnival’s bonds were the largest decliners in the junk bond space. Equity and bond prices for other cruise liners also fell.
This is the latest example of consumer-sensitive companies warning about downbeat earnings, inflationary woes, and weakening consumers.
