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CCL Stock Plummets to Barely Above $7.00 As Carnival Corporation Reports Tenth Consecutive Quarterly Loss


Last Friday, Carnival Corporation forecast a loss in the fourth quarter after it reported third quarter financial results which fell well short of Wall Street estimates. Carnival had a net loss of $770 million for the third quarter of 2022.

Carnival’s revenue has now missed expectations for the last ten (10) straight quarters dating back to fiscal 2Q in 2020.

Before Carnival announced the disappointing results, there was some hope that the cruise giant would finally return to profitability, but concerns with inflation, and high fuel prices in particular, as well as gargantuan debt of $35,000,000,000 (billion), caused shares of Carnival to plunge to $7.01 before closing at $7.02, a three-decade low.

CCL stock has plummeted nearly 90% from its high of over $68 back in January of 2018.

Carnival’s financial woes continue notwithstanding non-stop advertising and cheaper facres. The cruise company also recently (in August) abandoned COVID-19 vaccination and testing protocols which resulted in a rise in bookings, albeit a more dangerous environment on cruise ships.

Carnival’s current predicament has been slowly, but surely, occuring as the pandemic continues. Carnival ended up incurring over $36,000,000,000 (billion) in debt in the last two years.

Earlier this year, we reported that Carnival was heading into a “perfect storm.”

An analyst (Seeking Alpha) concluded several months ago that although revenue increased at Carnival Corporation, the company suffers from a “continuous deterioration” and its financial structure is now “completely compromised after 2 years of huge losses.” He suggests that Carnival’s debt has more than tripled, and there are stringent covenants limiting corporate maneuvering. Meanwhile, “COVID-19 difficulties are still persisting.” He writes of the continuing effects of COVID-19 on the cruise line:

“To date, what is left of the 2019 Carnival is very little. The cruise industry has been hammered by repeated difficulties and there is still no end in sight. In 2020 COVID-19 destroyed the entire industry . . . ”



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