Carnival Shares Plunge after Announcing Costa Concordia Shipwreck to Affect Earnings (CCL)

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Cruise line operator Carnival Corporation ( CCL ) on Tuesday said its earnings would be significantly affected by the tragic Costa Concordia shipwreck in Italy over the weekend.

The company said its 2012 earnings could be hampered by $85 million to $95 million, or -11 to -12 cents per share. Additional costs are also expected, but could not be determined at this time.

Late Friday evening, the Costa Concordia cruise liner ran aground, eventually sinking the ship and killing at least six people. An additional 29 people are still missing. Costa Cruises, the operator of the ship, is a subsidiary of Carnival Corp.


Carnival shares plunged $5.73, or -16.7%, in premarket trading Tuesday.

The Bottom Line
Shares of Carnival Corporation ( CCL ) have a 2.92% dividend yield, based on Friday's closing stock price of $34.28. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $36-$38 price levels.

Carnival Corporation ( CCL ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: CCL

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