Royal Caribbean Cruises Ltd. (RCL): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report
Summary:
Royal Caribbean's third quarter adjusted earnings of $2.20 per share beat the Zacks Consensus Estimate by a penny and were up 29% year over year. The upside reflects year-over-year improvement in revenues. Though total revenue of $2.39 billion marginally missed the Zacks Consensus Estimate, it went up 3.3% year over year owing to higher passenger ticket revenues as well as an increase in onboard spending. On a constant currency basis, net yields increased 4.2% year over year owing to a 4.4% increase in onboard revenue yields. Going forward, the company is expected to deliver solid results on strong booking trends, profitability initiatives and efforts to counter volatility in fuel prices. However, higher marketing and promotional spend coupled with increased cruise costs are threats to the company's margins in the near-term. We therefore remain Neutral on the stock.
Overview:
Based in Miami and incorporated in 1985, Royal Caribbean Cruises Ltd. (RCL) is a cruise company. The company has five cruise brands - Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Cruises and CDF Croisi res de France. Additionally, it has 50% investment in a joint venture with TUI AG, which operates the brand TUI Cruises. The company's cruise brands primarily serve the contemporary, premium and deluxe segments of the cruise vacation industry, which also includes the budget and luxury segments. The ships operate on a selection of worldwide itineraries that include approximately 490 destinations.
Royal Caribbean's five cruise brands have been aggregated as a single reportable segment based on the similarity of their economic characteristics as well as products and services.
Royal Caribbean Cruises Ltd. (RCL): Read the Full Research Report
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