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Cruise Stocks' Rough Ride Continues on Coronavirus Crisis
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The cruise industry has been driven to a standstill by the coronavirus-induced crisis. Notably, with the Centers for Disease Control (CDC) extending the "No Sail Order" for cruise ships for approximately three months, the scenario seems to be worsening for the industry. In fact, investors were sent into overdrive yesterday following the news.
Yesterday, major cruise operators like Royal Caribbean Cruises Ltd. (RCL - Free Report) , Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) , and Carnival Corporation & Plc (CCL - Free Report) declined 17%, 13.4% and 7.4%, respectively. Moreover, in the past three months, Royal Caribbean, Carnival and Norwegian Cruise have tanked 74.8%, 77.2% and 80.3%, respectively.
President Trump had previously put restrictions on passengers travelling from 26 European countries to the United States. Trump had stated, “We made a lifesaving move with early action on China. Now we must take the same action with Europe.”
It is quite obvious that bookings for the broader business are likely to suffer on account of the travel restrictions to contain the spread of the virus.
2020 Shaping up to be Forgettable One for Cruise Industry
Carnival expects coronavirus-induced crisis to affect its operations and global bookings. The company also believes that this pandemic is likely to cause delay in ship deliveries as the shipyards have been impacted as well. Moreover, management stated that cumulative advanced bookings for the remainder of 2020 and first-half 2021 are meaningfully lower than the prior year on a comparable basis, reflecting the negative effect of COVID-19. In the past 60 days, the Zacks Consensus Estimate for current year and next year has been revised downward by 80.3% and 50% to 89 cents and $2.43, respectively. Carnival has a Zacks Rank #5 (Strong Sell).
Royal Caribbean has withdrawn its guidance due to “uncertainty of changes in the magnitude, duration and geographic reach of coronavirus.” The company currently has a Zacks Rank #5. In the past 60 days, the Zacks Consensus Estimate for current year and next year have been revised downward by 88.9% and 50.8% to $1.14 and $5.73, respectively.
Norwegian Cruise Line will not deploy any vessels in Asia through the end of third-quarter 2020 due to the coronavirus. Per management, 2020 results are likely to be materially impacted if apprehensions regarding the coronavirus continue to intensify. In the past 60 days, the Zacks Consensus Estimate for current year and next year have been revised downward by 78.3% and 51.8% to $1.21 and $2.89, respectively.The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Cruise Stocks' Rough Ride Continues on Coronavirus Crisis
The cruise industry has been driven to a standstill by the coronavirus-induced crisis. Notably, with the Centers for Disease Control (CDC) extending the "No Sail Order" for cruise ships for approximately three months, the scenario seems to be worsening for the industry. In fact, investors were sent into overdrive yesterday following the news.
Yesterday, major cruise operators like Royal Caribbean Cruises Ltd. (RCL - Free Report) , Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) , and Carnival Corporation & Plc (CCL - Free Report) declined 17%, 13.4% and 7.4%, respectively. Moreover, in the past three months, Royal Caribbean, Carnival and Norwegian Cruise have tanked 74.8%, 77.2% and 80.3%, respectively.
President Trump had previously put restrictions on passengers travelling from 26 European countries to the United States. Trump had stated, “We made a lifesaving move with early action on China. Now we must take the same action with Europe.”
It is quite obvious that bookings for the broader business are likely to suffer on account of the travel restrictions to contain the spread of the virus.
2020 Shaping up to be Forgettable One for Cruise Industry
Carnival expects coronavirus-induced crisis to affect its operations and global bookings. The company also believes that this pandemic is likely to cause delay in ship deliveries as the shipyards have been impacted as well. Moreover, management stated that cumulative advanced bookings for the remainder of 2020 and first-half 2021 are meaningfully lower than the prior year on a comparable basis, reflecting the negative effect of COVID-19. In the past 60 days, the Zacks Consensus Estimate for current year and next year has been revised downward by 80.3% and 50% to 89 cents and $2.43, respectively. Carnival has a Zacks Rank #5 (Strong Sell).
Royal Caribbean has withdrawn its guidance due to “uncertainty of changes in the magnitude, duration and geographic reach of coronavirus.” The company currently has a Zacks Rank #5. In the past 60 days, the Zacks Consensus Estimate for current year and next year have been revised downward by 88.9% and 50.8% to $1.14 and $5.73, respectively.
Norwegian Cruise Line will not deploy any vessels in Asia through the end of third-quarter 2020 due to the coronavirus. Per management, 2020 results are likely to be materially impacted if apprehensions regarding the coronavirus continue to intensify. In the past 60 days, the Zacks Consensus Estimate for current year and next year have been revised downward by 78.3% and 51.8% to $1.21 and $2.89, respectively.The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>