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Cruise company Street estimates could drop by half after State Department warning: Instinet
Instinet analysts warn that Street estimates for cruise companies, including Carnival Corp. , Norwegian Cruise Line Holdings Ltd. and Royal Caribbean Cruises Ltd. could be cut by as much as half as a State Department warning drives down demand. The government agency has cautioned U.S. citizens with "underlying conditions" to avoid cruise travel after concerns about coronavirus. "It doesn't really matter that all of the stricken ships have been Carnival-branded vessels," Instinet analysts led by Harry Curtis wrote. "Consumers and the media have concluded that all ships are not only unsafe, but are potential two-plus week prisons." Analysts say cruise operators will benefit from lower fuel costs, but the headwind from negative perception will keep pressure on call volumes. Moreover, as revenue drops, cruise companies will have to deal with the costs of quarantines and customer transportation. FactSet forecasts fiscal 2020 revenue of $21.5 billion for Carnival, $11.5 billion for Royal Caribbean, and $6.9 billion for Norwegian Cruise. Carnival shares are down 50.6% over the past year, Royal Caribbean stock is down 44.2%, and Norwegian Cruise has slumped 50.7% over the past 12 months. The S&P 500 index has gained 8.4% over the last year.
https://finance.yahoo.com/m/f6979e7...f8667376/cruise-company-street.html?.tsrc=rss
Instinet analysts warn that Street estimates for cruise companies, including Carnival Corp. , Norwegian Cruise Line Holdings Ltd. and Royal Caribbean Cruises Ltd. could be cut by as much as half as a State Department warning drives down demand. The government agency has cautioned U.S. citizens with "underlying conditions" to avoid cruise travel after concerns about coronavirus. "It doesn't really matter that all of the stricken ships have been Carnival-branded vessels," Instinet analysts led by Harry Curtis wrote. "Consumers and the media have concluded that all ships are not only unsafe, but are potential two-plus week prisons." Analysts say cruise operators will benefit from lower fuel costs, but the headwind from negative perception will keep pressure on call volumes. Moreover, as revenue drops, cruise companies will have to deal with the costs of quarantines and customer transportation. FactSet forecasts fiscal 2020 revenue of $21.5 billion for Carnival, $11.5 billion for Royal Caribbean, and $6.9 billion for Norwegian Cruise. Carnival shares are down 50.6% over the past year, Royal Caribbean stock is down 44.2%, and Norwegian Cruise has slumped 50.7% over the past 12 months. The S&P 500 index has gained 8.4% over the last year.
https://finance.yahoo.com/m/f6979e7...f8667376/cruise-company-street.html?.tsrc=rss
