Royal Caribbean (RCL) Beats On Q3 Earnings, Lags Revenue
Zacks Investment Research | Oct 27, 2016 10:48PM ET
Royal Caribbean Cruises Ltd. (NYSE:RCL) posted mixed third-quarter 2016 results, wherein the bottom line outpaced the Zacks Consensus Estimate while the top line lagged the same.
Adjusted earnings of $3.20 per share were 3.2% ahead of the Zacks Consensus Estimate which was the same as management’s guided $3.10. The outperformance came on the back of strong yields and positive movements in currency and fuel. Further, earnings increased 12.7% from the year-ago tally of $2.84 due to higher revenues and a lower share count.
Total revenue increased 1.6% year over year to $2.53 billion, driven by higher onboard spending as well as passenger ticket revenues. However, revenues missed the Zacks Consensus Estimate of $2.58 billion by 0.7%.
Quarter Highlights
On a constant currency basis, net yields increased 2.9% year over year, better than the guidance primarily on the back of strong close-in demand for North American itineraries.
Passenger ticket revenues were up approximately 1.4% to nearly $1.90 billion. Onboard and other revenues also increased 2.3% to $663.8 million.
Net cruise costs (NCC), excluding fuel, decreased 1.6% on a constant currency basis, and were in line with management’s guidance.
Total cruise operating expenses decreased 3.4% year over year to $1.34 billion mainly due to a decline in fuel, payroll and related as well as onboard and other expenses. The decrease was partly offset by higher food costs.
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