Coronavirus forces Carnival to cut full-year guidance
By Alexander Bueso
Date: Wednesday 12 Feb 2020
(Sharecast News) - Carnival warned on Wednesday that the new Chinese coronavirus would have a "material" impact on its performance that was not anticipated when it last issued guidance.
The company said that it was unable to put an exact figure on the hit to its bottom line, given that the situation was still evolving.
But assuming that it was forced to suspend all operations in Asia through the end of April, then its full-year earnings per share were expected to be impacted by $0.55-0.65, including guest compensation.
"As a result of Coronavirus, the company believes the impact on its global bookings and cancelled voyages will have a material impact on its financial results which was not anticipated in the company's previous 2020 earnings guidance."
On 20 December, Carnival had guided towards adjusted 2020 EPS of $4.30-4.60.
Nevertheless, overnight, China's Zhong Nanshan, the researcher who led the fight against SARS in 2003, said the new Covid-19 virus would likely peak in mid or late February and hopefully end in April.
As of 1426 GMT, shares of Carnival were falling 1.06% to 3,093.0p.
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