Cruise Stock Prepares for Earnings Call

CCL is carrying an over 50% year-to-date deficit

Deputy Editor
Sep 21, 2022 at 1:09 PM
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The shares of Carnival Corp (NYSE:CCL) are down 3.8% at $10.01 this afternoon, as the cruise company readies to report third-quarter financial results before the open tomorrow. Wall Street anticipates Carnival to post losses of 15 cents per share on revenue of $4.9 billion.

A look at the equity's history of post-earnings reactions over the past two years shows a generally positive response. During its last eight reports, five of these next-day sessions were higher, including a 12.4% pop following its last earnings call in June. Carnival stock averaged a post-earnings swing of 3.2% the last eight quarters, regardless of direction. This time around, the options market is pricing in a much larger move of 6.7%.

On the charts, Carnival stock sits 50% lower in 2022. The shares have traded in a tight range between $11 and $9 this summer, and remain awfully close to CCL's two-year lows of $8.10 from June 30. More recently, the 100-day moving average cut short a rally just above the $11 level. 

CCL Chart September 212022

Options traders have favored puts ahead of earnings. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio that ranks higher than all but 10% of readings from the past year. This means puts are getting picked up at a much faster-than-usual pace. 

 

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