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 the opportunities presented by the fast-growing Asian cruise market.
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 remained stable. However, Royal Caribbean has posted positive earnings surprises for three out of four quarters, making for an average positive earnings surprise of around 11.48%.
Currently, RCL has a Zacks Rank #3 (Hold) 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 beats on earnings. Our consensus earnings estimate called for EPS of 72 cents per share, and the company reported EPS of 84 cents instead. Investors should note that these figures take out stock option expenses.
Revenues: RCL reported revenues of $2.058 billion. This beat our consensus estimate of $2.045 billion.
Key Stats to Note: On a constant currency basis, net yields were up 4.2% year over year, modestly better than the guidance due to strength in the Caribbean and China. Net cruise costs (NCC), excluding fuel, were up 3.4% on a constant currency basis, which was better than guidance, mainly driven by the timing of the expenses.
The company expects adjusted earnings per share to be $2.70 in the third quarter of 2015. Adjusted earnings in 2015 are expected to be in the range of $4.65 to $4.75 per share, up from the prior guidance of $4.45 to $4.65 per share. The increased outlook reflects the company’s expectation of beneficial currency and fuel rates.
Stock Price: RCL shares were up by more than 4.3% now following the release.
Check back later for our full write up on this RCL earnings report later!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment