Carnival Says Coronavirus Could Pare Up to 65 Cents a Share From Year Profit

Carnival estimates losses of 55 cents to 65 cents a share for the fiscal year due to the effect of the coronavirus.
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Carnival  (CCL) - Get Report expects the coronavirus to have a material impact of 55 cents to 65 cents a share in fiscal 2020.

The company reported the estimate Wednesday while saying that it is closely monitoring the evolving coronavirus situation. 

The estimate was a worst-case scenario in which the Miami company had to suspend all its operations in Asia through the end of April.

“The safety of guests and employees, compliance and protecting the environment are top priorities for the company,” a company statement said.

Carnival also said that it was coordinating closely with the U.S. Centers for Disease Control and Prevention and the World Health Organization to implement enhanced screening, prevention and control measures for its guests, crew and ships.

The company said that the travel restrictions imposed in the region have resulted in trip cancellations across Asia. These types of events typically have an impact on booking patterns, according to Carnival. They've led the company to revise its previous 2020 earnings guidance.

In late January, one of the company’s ships was held at the Italian port of Civitavecchia over concern that one of the 7,000 passengers and crew aboard the vessel was infected. 

A day later passengers were given the all-clear to disembark after the virus wasn’t found among the passengers.

Carnival shares at last check climbed 2.1% to $43.86.