Cruise Stocks Rebound as Hurricane Beryl Moves Past Caribbean

Key Takeaways

• Hurricane Beryl was downgraded to a tropical storm Monday after making landfall in Texas.
• Cruise stocks recovered Monday after Beryl caused disruption in the Caribbean last week. Cruise companies were forced to reroute due to the storm, sending shares lower.
• Beryl is the strongest hurricane on record to hit the Atlantic Ocean in the month of June.

Shares of cruise ship companies moved higher Monday after Hurricane Beryl was downgraded to a tropical storm.

Beryl made landfall on the Gulf Coast of Texas as a Category 1 Hurricane Monday morning, killing at least two. It was rated Category 4 last week, when Beryl became the strongest hurricane on record to hit the Atlantic Ocean in the month of June.

The storm made landfall in Grenada on July 1 and passed through the Caribbean, forcing cruises scheduled to traverse the islands to be rerouted, according to reports citing emails sent to customers. The news sent cruise operators’ shares lower. At least nine people were killed across Jamaica, Venezuela, Grenada, and Saint Vincent and the Grenadines.

Carnival, Royal Caribbean, Norwegian Shares All Rise

Shares of Carnival (CCL) gained more than 2% in recent trading Monday, while Royal Caribbean (RCL) increased nearly 3% and Norwegian Cruise Line (NCLH) rose nearly 5%. 

Last month, Carnival reported second-quarter adjusted earnings per share (EPS) of 11 cents, much better than the 2-cent-per-share loss projected by analysts.

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