Royal Caribbean's stock surges after profit beat offsets downbeat outlook
Shares of Royal Caribbean Cruises Ltd. surged 2.3% in premarket trade Tuesday, after the cruise operator beat second-quarter profit expectations, while sales and its profit outlook were below views. For the quarter ended June 30, earnings rose to $229.9 million, or $1.06 a share, from $185.0 million, or 84 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to $1.09, above the FactSet consensus of $1.02. Revenue increased to $2.11 billion from $2.06 billion, just shy of the FactSet consensus of $2.17 billion, as a miss in passenger ticket revenue offset a beat in onboard and other revenue. Looking ahead, the company expects third-quarter adjusted EPS of $3.10, below the FactSet consensus of $3.38, and 2016 adjusted EPS of $6.00 to $6.10, compared with expectations of $6.23. "While there are always puts and takes in our key markets, our portfolio is performing as expected, our booked position remains strong, and our newbuilds are entering their markets to great fanfare," said Chief Financial Officer Jason Liberty. The stock has tumbled 29% year to date through Monday, while the S&P 500 has gained 6.2%.
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