The Carnival stock has been underperforming the S&P 500 since the last report of earnings was out. The company has seen an 11.5% loss in its shares. Read more to find out if this scene will continue for the Carnival (CCL) until the next earning release!
Prior to understanding things from the analytical point of view, let us take a glance at the latest earnings report of the company. This would enable us to understand the case more clearly.
Current Carnival Stock Status in Numbers
In the third quarter of 2020, a loss per share of $2.91 was reported by Carnival. As compared to the same of the Zacks Consensus Estimate, which is $2.22, the given amount is a little less. The earnings per share of $2.63 were reported by Carnival in the 2019 quarter.
It is reported that $100 million marks of consensus were missed when the revenues earned were $31 million. With that, there was also a sharp decline in the top line of the quarter. The top line quarter of the 2020 quarter was $6.5 billion. The reason for this decline was due to the lockdown induced by the Coronavirus.
Carnival is not in a position to provide any guidance due to its inability to predict the return to the normal operations of its entire fleet. This, again, comes from the inconvenience of the Coronavirus pandemic.
The cumulative advanced bookings of the company are stated to be at the higher end. This is the one that is available for sale, for the capacity of the second half of the coming year. If compared to the bookings of the second half of 2019, the booking prices are lower. This is by mid-single digits which is reflective of the future cruise credits (FCC) effect after applying the previously canceled cruises.
The third fiscal quarter was left by the Carnival, which was of $8 billion and more in the liquidity. The estimated average cash burn rate of the company for the fourth quarter of 2020 is around $530 million. The amount is estimated after taking into account the ongoing lockdown. Carnival’s average cash burn rate, monthly, was $770 million in the third quarter. This rate was according to the expectations of the company.
What Must the Investors Expect?
Since the release of the earnings report, a downward trend was seen by the investors concerning the fresh estimates.
The Growth Score of Carnival is F, currently, which is considered to be poor. But on the bright side, the Momentum Score is C, which is so much better.
The Carnival Stock estimates have been going downward. A below-average return is expected from the investments made, in the coming months.