Carnival Share Price: The Storm Is Not Yet Over

Carnival share price has been on a strong downward trajectory for the past few weeks as economic recession fears grow. The CCL stock has crashed by 20% in the past month and more than 8% in the past week. The stock has dipped in price by more than 61% in price YTD.

Fourth Quarter Updates

Carnival share price rose by nearly 3% earlier this week on Wednesday after the company announced better-than-expected fourth-quarter earnings. However, the gains were capped by looming recession jitters in the European stock market.

Data published by the company on Wednesday shows that Carnival Plc posted a smaller-than-expected loss in the fourth quarter. The company posted an adjusted net loss of $0.85 which was lower compared to analysts’ expectations of $0.87.

For the cruise segment, revenue per passenger cruise day rose by 0.5% for the fourth quarter compared to 2019. Occupancy in the same quarter was 19% below pre-pandemic levels. However, this was better than the previous quarter, which was 29% below 2019 levels.

The company’s revenues jumped to $3.84 billion in the fourth quarter compared to $1.29 billion a year earlier. Even so, this was below analysts’ average estimate of $3.91 billion.

In his statement, Carnival’s CEO John Weinstein said:

“Our business continues to accelerate on an upward trajectory as we rapidly close the gap to 2019. In fact, we are already exceeding 2019 revenue per diem, and we’re gaining momentum on our return to strong profitability.”

Cruise operators, including Carnival, have been battling hiked fuel prices, a stronger US dollar, and Fed’s higher interest rates. Last week on Wednesday, the Federal Reserve raised its benchmark interest rate, the highest level in 15 years.

Carnival Share Price Analysis

In my last article, I predicted that the Carnival share price would be bearish and drop below important support at 589p. the stock has been stubbornly hovering below this support level for the past few days. It has moved below the 25-day and 50-day moving averages.

Therefore, the Carnival share price is likely to continue falling in the short term. If this happens, the next level to watch will be the important support at 512p. However, a move past the 50-day moving average will invalidate this view.

CCL Price Chart

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