The company has put the quarterly hit at about $0.11 to $0.12 against its earnings per share. J.P. Morgan downgraded the stock as a result of the accident’s impact. Carnival’s Costa brand is countered by the other brands of Cunard, P&O, AIDA, and Ibero internationally and the Carnival brand known so well throughout North America.
What is interesting here is that by seeing a drop of 16%, it is analogous to losing one-sixth of the vale when this is about 1% of its counted ships. It sounds like too much of a drop on the surface, but this comes at a time when the European business is rocky and at a time when promotions are high. Things were already tough, but this made a declining situation very bad.
Carnival shares fell more than 16% on Monday in London trading, but shares are up less than 1% in London trading today. In New York, Carnival Corporation (NYSE: CCL) shares are trading down 16.3% at $28.74 and the 52-week trading range is $28.52 to $48.13. Its market value before this accident was over $26.6 billion.
Royal Caribbean Cruises Ltd. (NYSE: RCL) is down 7.5% at $26.59 and its 52-week range is $18.70 to $49.99. Its market value was about $6.25 billion before the trading of this morning.
JON C. OGG
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