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Why Norwegian Cruise Line And Royal Caribbean Group Shares Are Falling Sharply

Norwegian Cruise Line Holdings Ltd NCLH and Royal Caribbean Cruises Ltd RCL shares are trading lower in sympathy with Carnival Corp CCL, which fell after the company reported worse-than-expected third-quarter financial results.

What Happened?

Carnival reported a third-quarter EPS loss of 65 cents, as well as an adjusted EPS loss of 58 cents, which missed the analyst consensus estimate of an EPS loss of 13 cents. Meanwhile, sales of $4.30 billion missed the $5.13 billion estimate.

Carnival says occupancy in the third quarter of 2022 increased 15 percentage points from the prior quarter.

Since the announcement of the company’s relaxed protocols in mid-August, aligning the company towards land-based vacation alternatives, booking volumes for all future sailings are considerably higher than strong 2019 levels.

Carnival added that third-quarter 2022 ended with $7.4 billion of liquidity, including cash and borrowings available under the company’s revolving credit facility.

What Else?

CEO Josh Weinstein commented, “The well-being of the Caribbean region, Florida and other states still in the path of Hurricane Ian is very important to us. On behalf of Carnival Corporation, I would like to extend our deepest concern for those affected by Hurricane Ian and Fiona, some of whom are our own employees, travel agent partners, destination communities and loyal guests.”

See Also: Why Lululemon Stock Is Sliding Today

Read More: Why Norwegian Cruise Line And Royal Caribbean Group Shares Are Falling Sharply

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