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Royal Caribbean (RCL) Q1 Earnings Beat Estimates, Sales Lag

Royal Caribbean Cruises Ltd. RCL operates as a global cruise and vacation company. Given the strength and diversity of its brands and itineraries, this cruise operator has successfully captured the potential and repeat cruise vacationers.

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 and demand trends, ship and technological innovation, capacity growth, along with various profit-generating initiatives are expected to drive growth.

However, higher marketing and promotional spend along with increased cruise costs has been hurting margins. Further, lingering global uncertainties in key operating regions coupled with negative currency translation might continue to limit top-line growth.

Investors should note that the consensus estimate for RCL has been moving slightly upward over the last 30 days. Moreover, RCL’s earnings have been strong over the past few quarters. The company posted positive earnings surprises in each of the last four quarters, with an average beat of 5.86%. Meanwhile, revenues lagged the Zacks Consensus Estimate in three of the trailing four quarters.

RCL currently has a Zacks Rank #3 (Hold) 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. The Zacks Consensus Estimate called for earnings per share of 96 cents and the company reported earnings of $1.09 per share.

Revenues: RCL reported revenues of $2.03 billion, slightly lagging the Zacks Consensus Estimate of $2.05 billion.

Key Stats to Note: On a constant currency basis, net yields were up 4.9% year over year. Net cruise costs (NCC), excluding fuel increased 11.2% on a constant currency basis in first-quarter 2018.

Stock Price Impact: At the time of writing, the stock price of Royal Caribbean was up 3.4% during the pre-market trading hours following the earnings release.

Royal Caribbean Cruises Ltd. Price, Consensus and EPS Surprise

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

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

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