Why Are Carnival Shares Falling Friday? - Carnival (NYSE:CCL)

Group 1: Market Impact - Carnival Corporation's stock fell to $26.48, a decrease of 2.50% in premarket trading, following a closing price of $27.16 [1][6] - The decline in Carnival's stock is attributed to rising oil prices, with WTI crude nearing $85 per barrel and Brent crude reaching $88, marking a 20% increase for the week, the largest since early 2022 [1][2] Group 2: Industry Context - The surge in oil prices is driven by disruptions in the Strait of Hormuz due to the U.S.–Israel–Iran conflict, affecting the transit of approximately 20 million barrels of oil daily [2] - The current geopolitical tensions have led to a significant spike in oil prices, with Brent crude experiencing a rise exceeding 7%, compared to a 2% increase during the onset of the Ukraine conflict in February 2022 [2] Group 3: Earnings Outlook - Carnival is scheduled to report earnings on March 20, with an estimated EPS of 18 cents, up from 13 cents year-over-year [5][6] - Revenue is projected at $6.12 billion, an increase from $5.81 billion year-over-year, indicating positive growth [6] - The company's valuation stands at a P/E ratio of 13.4x, suggesting a potential value opportunity for investors [6]