Carnival Shares Slip 3%, Oil Surge Prompts Gulf Cruise Cancellations
Carnival shares fell 3.03% to $27.16 yesterday, underperforming the S&P 500’s 0.57% drop and sliding 12.71% over the past month versus a 2.06% sector gain. Oil prices have surged 22% due to the Iran conflict, forcing Gulf cruise cancellations and squeezing margins as fuel makes up roughly 10–15% of revenues.
1. Recent Share Performance
Carnival closed the latest session at $27.16, dropping 3.03% and underperforming the S&P 500’s 0.57% decline, the Dow’s 1.61% loss and the Nasdaq’s 0.26% fall. Shares have slid 12.71% over the past month, versus a 2.06% gain in the Consumer Discretionary sector.
2. Earnings Projections and Valuation
Analysts forecast Q1 EPS of $0.18, up 38.46% year-over-year, on revenues of $6.1 billion, a 5.01% increase, while full-year EPS is seen at $2.54 and revenues at $27.85 billion. Carnival trades at a forward P/E of 11.02 and a PEG of 1.02, below the leisure industry averages of 16.54 and 1.39.
3. Oil Prices and Cruise Cancellations
Spiking oil prices—up 22% due to the Iran conflict—have led Carnival to cancel Gulf region cruises, placing pressure on profit margins as fuel costs account for roughly 10–15% of cruise revenues.