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Carnival Corporation & plc (CCL) stock gains over Pre-Market: Things you need to know

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Shares of Carnival Corporation & plc (CCL) stock were continuing the uptrend in the pre-market trading session after gaining 1.74% at the previous closing. CCL was up by 2.45% to reach $29.30 a  share as of this writing. A couple of news related to CCL stock are wandering among investors. Let’s have a look at current events.

What’s happening?

Yesterday, on April 6, 2021, the Carnival Cruise line notified its guest about the suspension of cruise operations out of U.S ports through July. This was due to an extension in the suspension of all operations from the U.S ports till June 30. President Christine Duffy said that they had no plan to move Carnival Cruise Line ships outside the U.S ports but they had no option other than this in order to continue their operations which had been on a pause for a year due to the COVID-19 pandemic.

Carnival Corp. spokesman on Tuesday said that the passengers don’t need to vaccinate against COVID-19 before traveling. This reaction from CCL came after the announcement of its rival Norwegian Cruise Line Holdings Ltd that it would be mandatory for the passengers to be vaccinated against COVID-19 before the start of cruises in July.

Financial View of CCL stock

CCL stock is expected to announce its first-quarter financial results of 2021 later today. In the previous quarter, CCL stock had a negative earnings surprise of 5.2%. The Zacks Consensus projected a $1.66 loss per share in this quarter. The reason for the loss is obvious as Cruise operations had been halted for a year due to COVID-19 escalations. In the first quarter of 2020, CCL stock reported 22 cents earnings per share. The Zack Consensus estimated the $108 million revenue for the first quarter of 2021 which shows a decline of 97.7% as compared to the same period of the prior year.

Conclusion:

So far so good for CCL stock as far as market sentiment is concerned but the first-quarter earnings report ahead would further explain the position of CCL . Cruise operations had been badly damaged due to the rise of the coronavirus pandemic and that why a major fall in the revenue is expected in the earnings report ahead. In a nutshell, long-term investors are required to do deep research before taking a decision.

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