Royal Caribbean Cruises
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Royal Caribbean Cruises beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank.
Margins shrank across the board.
Royal Caribbean Cruises booked revenue of $2.23 billion. The 22 analysts polled by S&P Capital IQ expected revenue of $2.19 billion on the same basis. GAAP reported sales were 4.1% lower than the prior-year quarter's $2.32 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.68. The 18 earnings estimates compiled by S&P Capital IQ forecast $1.48 per share. GAAP EPS of $1.68 for Q3 were 7.7% lower than the prior-year quarter's $1.82 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.4%, 10 basis points worse than the prior-year quarter. Operating margin was 20.3%, 160 basis points worse than the prior-year quarter. Net margin was 16.5%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.81 billion. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $7.70 billion. The average EPS estimate is $1.93.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 412 members out of 497 rating the stock outperform, and 85 members rating it underperform. Among 147 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 131 give Royal Caribbean Cruises a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Royal Caribbean Cruises is outperform, with an average price target of $31.13.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Royal Caribbean. Motley Fool newsletter services recommend Royal Caribbean. 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.