Carnival Corp CCL, Norwegian Cruise Line Holdings Ltd NCLH and Royal Caribbean Cruises Ltd RCL shares are all trading higher Tuesday afternoon.
Several companies in the hotels, restaurants & leisure sector are all trading higher amid overall market strength as stocks rebound following September's selloff. The cruise line sector otherwise fell sharply last week after Carnival reported worse-than-expected third-quarter financial results.
What Happened Last Week?
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.
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."
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