Royal Caribbean Cruises Ltd. (RCL) operates as a global cruise and vacation company. Royal Caribbean has adopted a strategy to grow beyond its familiar itineraries and capitalize on Asian opportunities.
Strong marketing initiatives have been helping the company to keep its booking strong over the past few years at most of its itineraries, thereby resulting in improvement in revenue yields. Its consistent efforts to reduce fuel consumption have aided the company to generate profits.
Investors should also note the recent earnings estimate revisions for RCL, as the consensus estimate has been almost moving upwards. Moreover, RCL has a decent history in earnings season. Royal Caribbean has delivered positive earnings surprises for four quarters in a row, making for an average earnings surprise of over 7%.
Currently, RCL has a Zacks Rank #2 (Buy) but that could change following Royal Caribbean’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: RCL misses on earnings. Our consensus earnings estimate called for EPS of 41 cents per share, and the company reported EPS of 32 cents instead. Investors should note that these figures take out stock option expenses.
Revenues: RCL reported revenues of $1.82 billion. This missed our consensus estimate of $1.87 billion.
Key Stats to Note: On a constant currency basis, net yields increased 2.7% year over year lower than the company's guidance of a 3.5% increase. Net cruise costs (NCC), excluding fuel, were up 2.3% on a constant currency basis, and was at the lower end of the management’s expectation of an increase in the range of 2% to 3%.
The company expects adjusted earnings per share in the range of 10 cents to 15 cents per share in first quarter of 2015.
Stock Price: RCL shares were down almost 2.08% ahead of the report, and were down nearly 4.8% now following the release.
Check back later for our full write up on this RCL earnings report later!
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