Royal Caribbean Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Royal Caribbean Cruises (NYSE: RCL  ) shares jumped 13% in early trading after the company released earnings.

So what: The company reported net income of $356.8 million, or $1.64 per share, up from $1.07 per share a year ago. It also increased guidance and said it would likely set an earnings record in 2011.

Now what: The high seas have been good to Royal Caribbean, and conditions look positive for the foreseeable future. Given the increased guidance, a forward price/earnings ratio of 14.3 is making this stock look relatively cheap. I always like to see an earnings beat followed by increased guidance, so I'm buying today's move higher.

Interested in more info on Royal Caribbean Cruises? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his Motley Fool CAPS picks at TMFFlushDraw.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1344831, ~/Articles/ArticleHandler.aspx, 8/22/2014 7:24:25 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement