Carnival Corp expects 2020 earnings to suffer due to coronavirus

Carnival Corp. said today that the impact of the Covid-19 coronavrius on bookings and canceled cruises due to the outbreak would impact its 2020 earnings.

“Travel restrictions as a result of coronavirus necessitated the suspension of cruise operations from ports in China … and are now resulting in the cancellation of voyages in other parts of Asia,” the line said. “Significant events affecting travel typically have an impact on booking patterns, with the full extent of the impact generally determined by the length of time the event influences travel decisions. As a result of coronavirus, the company believes the impact on its global bookings and canceled voyages will have a material impact on its financial results, which was not anticipated in the company’s previous 2020 earnings guidance.”

Carnival said that if it has to suspend all of its operations in Asia through the end of April, it would impact its fiscal 2020 financial performance by 55 to 65 cents per share, which includes guest compensation. In addition, the impact on global bookings will further affect the company’s financial performance.

Carnival Corp. said it was evaluating contingency plans to mitigate the impact and would provide an update during its first quarter 2020 earnings release in late March.

Carnival’s stock price has fallen about 12% since mid-January.

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