Royal Caribbean Cruises Ltd. Earnings Cheat Sheet: Revenue Grows Again by Double-Digits

Royal Caribbean Cruises Ltd. (NYSE:RCL) reported its results for the third quarter. Royal Caribbean Cruises operates in the cruise vacation industry. It owns five cruise brands: Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises and CDF Croisieres de France.

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Royal Caribbean Cruises Earnings Cheat Sheet for the Third Quarter

Results: Net income for Royal Caribbean Cruises Ltd. rose to $399 million ($1.82 per share) vs. $350 million ($1.61 per share) in the same quarter a year earlier. This marks a rise of 14% from the year earlier quarter.

Revenue: Rose 13% to $2.3 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: RCL fell short of the mean analyst estimate of $1.86 per share. Analysts were expecting revenue of $2.28 billion.

Quoting Management: “It was gratifying to beat both our revenue and cost forecasts in the third quarter despite the turmoil in the worldwide financial markets,” said Richard D. Fain, chairman and chief executive officer.Fain continued, “The strength of our brands, combined with the value of our product, provides us with a high degree of economic resilience, and both our 2011 results and our 2012 booking patterns validate this.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 12.4%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 16.8% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 54.4% and in the first quarter, the figure rose 4.7%.

The company has now fallen short of estimates in the last two quarters. In the second quarter, it missed expectations by one cent with net income of 43 cents versus a mean estimate of net income of 44 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 26 cents a share to 21 cents over the last ninety days. The average estimate for the fiscal year is $2.85 per share, down from $3.15 ninety days ago.

Competitors to Watch: Carnival Corporation (NYSE:CCL), Wyndham Worldwide Corp. (NYSE:WYN), Carnival plc (NYSE:CUK), Ambassadors Intl., Inc. (NASDAQ:AMIE).

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(Source: Xignite Financials)

 

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