Costa Concordia has hurt new bookings but thanks to ‘a very robust starting position’ before the incident, Royal Caribbean’s booked load factors and pricing are still higher than at the same time a year ago, the company said today.
UBS Investment Research found another 30-basis-point sequential uptick in cruise pricing last week which analyst Robin Farley said could suggest the Costa Concordia impact may not be as negative as originally feared.
Carnival Corp. & plc cut its first quarter earnings guidance by 15 cents per share, to a loss in the range of 5 cents to 9 cents per share, and shaved 48 cents to 51 cents off its 2012 EPS, for a new range of $2.04 to $2.37. The new estimates cover Costa Concordia being out of service, one-time accident costs, higher fuel prices and a tiny boost from foreign currency.
William Blair & Co. expects Royal Caribbean to meet the brokerage’s 16-cent earnings per share estimate for the fourth quarter, within guidance of 9 cents to 19 cents, and said the cruise operator has experienced a material year-over-year pricing uptick over the past two weeks.
One full week after Costa Concordia’s capsize, UBS Investment Research has found that the impact on cruise bookings may not be as negative as feared, and pricing in general is up—even for Costa Crociere.
Following the Costa Concordia disaster, Carnival shares are at an enterprise value per berth valuation seen only once in 15 years of quarterly EV/berth averages, UBS Investment Research said in new research.
Carnival shares were ‘clobbered’—as MarketWatch put it—by the Costa Concordia wreck in the first New York Stock Exchange trading session following Friday night’s ship disaster.
CCL shares at midday had plunged more than 14% to $29.41, a price that skated just above the 52-week low of $28.52 on Oct. 4.
Carnival Corp. & plc estimates the impact from Costa Concordia being out of service for the rest of 2012 at approximately $85m to $95m, or 11 cents to 12 cents per share for the fiscal year ending Nov. 30.
Standard & Poor’s Ratings Services on Sunday said that its ratings on Carnival Corp. (BBB+/Stable/A-2), Royal Caribbean Cruises Ltd. (BB/Stable/--) and NCL Corp. Ltd. (B+/Stable/--) are currently unaffected by the Costa Concordia tragedy. However, the agency cautioned that wave season demand could suffer.