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Royal Caribbean (RCL) Beats Q3 Earnings, Revenues Lag

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 gone marginally down. However, Royal Caribbean has posted positive earnings surprises for three out of four quarters, making for an average positive earnings surprise of around 9.51%.

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 $2.70 per share, and the company reported EPS of $2.84 per share instead. Investors should note that these figures take out stock option expenses.

Revenues : RCL reported revenues of $2.52 billion. This marginally missed our consensus estimate of $2.53 billion.

Key Stats to Note : On a constant currency basis, net yields were up 5.1% year over year, better than the guidance due to strength in the Caribbean and European demand and strong performance in Asia, which more than off-set further weakness in Latin America. Net cruise costs (NCC), excluding fuel decreased 1.8% on a constant currency basis.

Adjusted earnings in 2015 are expected to be in the range of $4.80 per share, up from the prior guidance of $4.65 to $4.75 per share.

Stock Price : RCL shares were up by more than 4% now following the release.

Check back later for our full write up on this RCL earnings report later!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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