We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Carnival (CCL) Stock Down 11% on Soft Q3 Preliminary Results
Read MoreHide Full Article
Carnival Corporation & Plc (CCL - Free Report) reported preliminary third-quarter 2020 financial numbers. Following the preliminary results, the company’s shares declined nearly 11% yesterday.
Arnold Donald, president and CEO, said “Just six months after we paused cruise operations across our global fleet, this past weekend, we successfully completed our first seven day cruise on our Italian brand Costa. Soon a second of our nine World's Leading Cruise Lines' brands will resume guest operations, our German sourced brand AIDA.”
Preliminary Q3 Results
For third-quarter 2020, the company expects GAAP net loss of $(2.9) billion, which includes $0.9 billion of non-cash impairment charges. Moreover, adjusted net loss in the quarter is likely to be $(1.7) billion.
Moreover, the company’s monthly cash burn in the quarter was $770 million, in line with the company’s expectation. In fourth-quarter 2020, the company anticipates monthly cash burn to be nearly $530 million. As of Aug 31, 2020, the company’s cash and cash equivalent totaled $8.2 billion.
The company anticipates non-new build capital expenditures during fourth-quarter 2020 to be nearly $130 million.
Recommencement of Operations & Guest Bookings Update
Due to the pandemic, the company paused its operations in mid-March. However, it restarted limited guest operations on Sep 6, 2020, with Costa Cruises' ("Costa") successful voyage visiting five destinations in Italy. Carnival will also operate its other cruises with limited operations. The company’s AIDA cruises will sail during the fall of 2020.
The company said bookings for second half of 2021 are at the higher end of the historical range and identical to where booking positions were in 2018 for the second half of 2019. The company continues to accept bookings for 2021 and 2022.
Due to the current scenario, the company is unable to anticipate when the entire cruises will return to normal operations. Carnival has refrained from providing earnings guidance owing to the same.
So far this year, shares of the company have plummeted 68.6% compared with the industry’s decline of 41.4%.
Carnival, which shares space with Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) and Royal Caribbean Cruises Ltd. (RCL - Free Report) , has a Zacks Rank #5 (Strong Sell) at present.
Twin River 2021 earnings are expected to surge 273.5%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Carnival (CCL) Stock Down 11% on Soft Q3 Preliminary Results
Carnival Corporation & Plc (CCL - Free Report) reported preliminary third-quarter 2020 financial numbers. Following the preliminary results, the company’s shares declined nearly 11% yesterday.
Arnold Donald, president and CEO, said “Just six months after we paused cruise operations across our global fleet, this past weekend, we successfully completed our first seven day cruise on our Italian brand Costa. Soon a second of our nine World's Leading Cruise Lines' brands will resume guest operations, our German sourced brand AIDA.”
Preliminary Q3 Results
For third-quarter 2020, the company expects GAAP net loss of $(2.9) billion, which includes $0.9 billion of non-cash impairment charges. Moreover, adjusted net loss in the quarter is likely to be $(1.7) billion.
Moreover, the company’s monthly cash burn in the quarter was $770 million, in line with the company’s expectation. In fourth-quarter 2020, the company anticipates monthly cash burn to be nearly $530 million. As of Aug 31, 2020, the company’s cash and cash equivalent totaled $8.2 billion.
The company anticipates non-new build capital expenditures during fourth-quarter 2020 to be nearly $130 million.
Recommencement of Operations & Guest Bookings Update
Due to the pandemic, the company paused its operations in mid-March. However, it restarted limited guest operations on Sep 6, 2020, with Costa Cruises' ("Costa") successful voyage visiting five destinations in Italy. Carnival will also operate its other cruises with limited operations. The company’s AIDA cruises will sail during the fall of 2020.
The company said bookings for second half of 2021 are at the higher end of the historical range and identical to where booking positions were in 2018 for the second half of 2019. The company continues to accept bookings for 2021 and 2022.
Due to the current scenario, the company is unable to anticipate when the entire cruises will return to normal operations. Carnival has refrained from providing earnings guidance owing to the same.
So far this year, shares of the company have plummeted 68.6% compared with the industry’s decline of 41.4%.
Carnival, which shares space with Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) and Royal Caribbean Cruises Ltd. (RCL - Free Report) , 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 2021 earnings are expected to surge 273.5%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>