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Why Cruise Line Stocks Are Sailing Choppy Waters Today

Published 09/08/2022, 14:23
Updated 09/08/2022, 15:10
© Reuters.  Why Cruise Line Stocks Are Sailing Choppy Waters Today

© Reuters. Why Cruise Line Stocks Are Sailing Choppy Waters Today

Shares of Royal Caribbean Cruises Ltd (NYSE: RCL) and Carnival Corp (NYSE: LON:CCL) are sinking Tuesday after Norwegian Cruise Line Holdings Ltd (NYSE: NCLH) reported worse-than-expected financial results and issued guidance below analyst estimates.

Norwegian reported second-quarter revenue of $1.2 billion, which missed the estimate of $1.26 billion, according to data from Benzinga Pro. The cruise line company reported a second-quarter adjusted net loss of $1.14 per share, which missed the estimate for a loss of 86 cents per share.

Norwegian said it expects third-quarter revenue to be between $1.5 billion and $1.6 billion versus the estimate of $1.88 billion. Occupancy is expected to be in the low 80% range.

The company said it expects to report a net loss in the third quarter as a result of the COVID-19 pandemic, the effects of the Russia-Ukraine conflict and current macroeconomic conditions.

Carnival (NYSE:CCL) and Royal Caribbean shares traded lower on the Norwegian report. Carnival is the world's largest global cruise company. Royal Caribbean is the second largest and Norwegian ranks third.

See Also: Benzinga Before The Bell: Tesla's China Sales Plunge, Snap Rolls Out Parental Control Features, White House Unaware of Raid On Trump's Mar-a-Lago And Other Top Financial Stories Tuesday, August 9

RCL, CCL Price Action: Royal Caribbean was down 3.06% at $39 and Carnival was down 3% at $9.71 at press time, according to Benzinga Pro.

Photo: Pexels from Pixabay.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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