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magazineCarnival shares have soared this year but it’s become a rockier ride
Shares in cruise operator Carnival (CCL) are trading 75% higher versus the start of 2023 thanks to strong customer demand for its voyages. Despite the strong rally, the shares have become more volatile in recent sessions after the company guided for lower than expected profit in the current quarter.
The cruise industry has seen a surge in bookings this year from seasoned cruise travellers as well as those who have never tried it before.
Carnival’s second-quarter results on 26 June beat market forecasts with smaller net losses than expected at $407 million versus guidance of $425 million to $525 million. It generated record second quarter revenue of $4.9 billion and said bookings made during the period reached a new all-time high for all future sailings.
Despite this good news, investors focused more on guidance for third quarter profit to come in below previous estimates thanks to rising costs, sending its shares down nearly 14% on the day. The following day saw the stock rebound 9% on the London market.
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- The UK stock market is starting to look increasingly lopsided
- Carnival shares have soared this year but it’s become a rockier ride
