Investor Alert

Sept. 15, 2020, 7:44 a.m. EDT

Carnival's stock slumps after ship disposals increased, net loss outlook

Shares of Carnival Corp. (NYS:CCL) (LON:UK:CCL) slumped 2.5% in premarket trading Tuesday, after the cruise ship operator said it will accelerate actions to become leaner, including an increased reduction in capacity. The company said it was accelerating the exit of 18 ships from its fleet, representing a reduction in capacity of 12%; in July, the company said it expected to dispose of 13 ships, representing a reduction in capacity of 9%. Carnival said it expects only two of the four ships originally scheduled to be delivered in 2020 will be delivered by the end of the year, and only expects five of nine ships originally scheduled for delivery in fiscal 2020 and 2021 are expected to be delivered by the end of 2021. Also Tuesday, Carnival said it expects a net third-quarter loss of $2.9 billion, including a $900 million cash impairment charge, and an adjusted net loss of $1.7 billion. The FactSet consensus for net losses is $1.66 billion. The stock has tumbled 64.9% year to date through Monday, while the S&P 500 (S&P:SPX) has gained 4.7%.

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