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Cruise stocks shrug off Carnival’s coronavirus warning to trade higher

February 12, 2020


Shares of cruise operators rose Wednesday, as investors shrugged off the latest update on the sector’s exposure to COVID-19, the coronavirus that was first identified in late 2019 in Wuhan, China.

Carnival Corp. CCL, +2.28% told investors that it could face a per-share earnings impact of 55 cents to 65 cents in fiscal 2020 if all operations are suspended in Asia through the end of April. While that has not come to pass and may be averted, the cruise line said there will be a material impact on the business due to suspended cruises in Chinese ports, cancellations in other parts of Asia, and the impact on bookings, which the company said is determined by the length of time that an event influences travel.

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