Carnival stock surges as Q1 losses widened to $2 billion but cash burn was less than expected

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Shares of Carnival Corp.
CCL,
+6.57%

jumped 4.7% in morning trading Wednesday, after the cruise operator provided a business update for the first quarter, with the net loss widening more than expected although cash burn was less than projected. The company said the net loss for the quarter swelled to $2.0 billion, after a loss of $781 million in the year-ago period and compared with the FactSet loss consensus of $1.7 billion. Meanwhile, the company said it average monthly cash burn rate for the quarter was $500 million, which was better than guidance provided in January of about $600 million. The company said it ended the first quarter with $11.5 billion in liquidity, up from $9.5 billion at the end of the fourth quarter, and said booking volumes for all futures cruises during the quarter were about 90% higher than in the fourth quarter. Carnival expects six of its nine brands to resume limited guest cruises by the summer. The business update comes a day after the company’s Carnival Cruise Line said it extended the suspension of all cruises from U.S. ports through June 30, and that it may have no choice but to move its ships outside the U.S. given Centers for Disease Control and Prevention restrictions. The stock has run up 38.4% year to date, while the S&P 500
SPX,
+0.16%

has gained 8.6%.

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