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Carnival P&O Cruises Extends UK Operation Halt Till Early 2021

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Owing to circumstances evolving from the coronavirus pandemic, Carnival Corporation & Plc’s (CCL - Free Report) P&O Cruises recently announced the extension to its pause in U.K. operations till early 2021.

Notably, Caribbean cruises are cancelled till January-end 2021, while voyages covering Southampton, Arcadia and Aurora have been called off till February 2021. However, for cancelled cruises, guests are entitled to receive either an 125% future cruise credit or a full refund by filling out a web form.

Meanwhile, P&O Cruises president Paul Ludlow stated, "These further cancellations vary according to ship as well as complexity and length of itineraries, advice and guidance regarding ports of call and current air availability for fly/cruises.”

Nonetheless, the company intends to closely monitor the situation and is also working with government bodies to implement enhanced health protocols upon resumption of operations.

Price Performance

Coming to price performance, shares of Carnival have declined 68% so far this year, compared with the industry's decline of 41.2%. Notably, the company has been substantially affected by the coronavirus outbreak. Although the company cannot estimate the impact of the outbreak at this time, it is likely that the pandemic will have a material adverse effect on its operations through 2020. Notably, earnings estimates for 2020 have moved down 1.2 % over the past 30 days, depicting analysts’ concern over the stock’s growth potential.

Carnival — which shares space with Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) and Royal Caribbean Cruises Ltd. (RCL - Free Report) in the Zacks Leisure and Recreation Services industry — has a Zacks Rank #5 (Strong Sell) at present.

A Key Pick

A better-ranked stock in the leisure space is Twin River Worldwide Holdings, Inc. , which carries a Zacks Rank # 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Twin River’s 2021 earnings are expected to surge 273.5%.

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