Carnival says earnings could take a big hit if it has to halt Asia operations for the coronavirus


This is breaking news. Please check back for updates.

Carnival Cruise Lines said Wednesday the deadly Chinese coronavirus could dent earnings this year by as much as 65 cents per share if the cruise line is forced to suspect Asia operations. 

“While not currently planned, if the company had to suspend all of its operations in Asia through the end of April, this would impact its fiscal 2020 financial performance by $0.55 to $0.65 per share, which includes guest compensation,” the company said in a statement. 

Carnival shares rose more than 2% on Wednesday despite the disclosure as investors have been anticipating a material impact to earnings because of the virus. The shares are down 13% this year.

Cruise lines and other travel stocks have been hit hard this year as the deadly coronavirus spreads throughout the globe. Carnival previously suspended cruise operations from ports in China and is now cancelling cruises in other parts of Asia. 

“As a result of Coronavirus, the company believes the impact on its global bookings and cancelled voyages will have a material impact on its financial results which was not anticipated in the company’s previous 2020 earnings guidance,” Carnival said. 

Products You May Like

Articles You May Like

As Walmart grows in e-commerce, investors look for a plan to stem the losses
How diamonds are grown in a lab
Kohl’s to lay off 250 workers as part of restructuring
From Nantucket to Martha’s Vineyard: Island hopping in New England the easy way
40 years ago, NASA sent a message to aliens — here’s what it says

Leave a Reply

Your email address will not be published. Required fields are marked *