Source: Passenger Ships
August 1st 2017
Royal Caribbean Cruises has beaten market expectations for the second quarter and saw its shares rise in pre-market trading.
The Miami-based company reported adjusted earnings of $369.5m, or $1.71 per share, compared to $229.9m a year ago.
Analysts were projecting Royal Caribbean to earn $1.67 per share for the period.
Shares in Royal Caribbean were gaining as much as 4% at $113.07 each. Its shares jumped to their highest level last month after JP Morgan upgraded its rating.
“Executing beautifully” Richard Fain, chairman and chief executive of Royal Caribbean, said: “Our brands are executing beautifully, keeping the business in an exceptionally strong position.
“Strong close-in demand for cruise bolstered the quarter and we see further uplift for the balance of the year, positioning us well for the Double-Double and beyond.”
The cruise ship owner aims to double its earnings per share by 2017 and have a double-digit return on invested capital.
Looking ahead, Royal Caribbean said its position for the next 12 months in terms of rate and volume is also strong.
Jason Liberty, executive vice-president of Royal Caribbean, said: “Demand has remained strong, and we have captured the related revenue opportunity.”
“These demand trends and continued cost discipline have resulted in the highest second quarter earnings in company history and have put us in position for another record year and achieving our Double-Double targets.”
Royal Caribbean has also lifted its full year earnings per share guidance to $7.35-$7.45