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Royal Caribbean (RCL) Tops Q4 Earnings, Misses Revenues

Royal Caribbean Cruises Ltd.RCL operates as a global cruise and vacation company. The company's North American products and Asia itineraries have been performing strongly over the past few quarters. Also, the company's decision to invest in the fast-growing Chinese cruise markets is commendable.

Going forward, strong booking trends, technological innovation, capacity growth and various profit-generating initiatives are expected to drive growth.

However, the company is incurring higher costs for its restructuring initiatives and consolidation efforts, which has been hurting margins. Further, lingering global uncertainties coupled with negative currency translation has been limiting top-line growth.

Investors should note that the consensus estimate for RCL has been moving slightly downwards over the last 60 days. Nonetheless, RCL's earnings have been strong over the past few quarters. In fact, the company posted positive earnings surprises in each of the last four quarters, with an average beat of 22.60%. However, revenues lagged the Zacks Consensus Estimate in three of the trailing four quarters.

Royal Caribbean Cruises Ltd. Price and EPS Surprise

Royal Caribbean Cruises Ltd. Price and EPS Surprise | Royal Caribbean Cruises Ltd. Quote

RCL currently has a Zacks Rank #4 (Sell) but that could change following Royal Caribbean's earnings report which was just released. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

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 earnings per share of $1.22 and the company reported earnings of $1.23 per share. Investors should note that these figures take out stock option expenses.

Revenues: RCL reported revenues of $1.91 billion. This lagged our consensus estimate of $1.96 billion

Key Stats to Note: On a constant currency basis, net yields were up 5.3% year over year, lower than the guidance. Net cruise costs (NCC), excluding fuel decreased 1.9% on a constant currency basis, better than the guidance.

Stock Price Impact: At the time of writing, the stock price of Royal Caribbean was up over 2% during the pre-market trading hours following the earnings release.

Check back 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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