(Photo courtesy gannett-cdn.com)
Carnival reported their second-quarter earnings yesterday, and after multiple ships experiencing Covid-19 outbreaks and a wave of cancellations, our expectations were pretty low. But the cruise line’s earnings were even worse than we could have predicted.
Analysts were expecting a loss of $1.76 a share. Carnival reported a $4.4 billion loss, or a loss of $3.30 per share, for the second quarter.
- For context: In the same quarter last year, Carnival turned a $430M profit
Wall Street also expected revenue to only fall to about $738 million. Instead, it plummeted 85% to $700 million.
Carnival stressed in the earnings release that it has ample liquidity of about $7.6 billion to stay afloat during an extended pause in operations. But it also said it expects to burn through about $650 million in cash per month during the second half of 2020.
It’s impossible to know for shore if Carnival will be able to turn things around. We’ll just have to wait and sea.