Royal Caribbean Cruises
The 10-second takeaway
For the quarter ended March 31 (Q1), Royal Caribbean Cruises met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share expanded significantly.
Margins grew across the board.
Royal Caribbean Cruises notched revenue of $1.91 billion. The 19 analysts polled by S&P Capital IQ expected net sales of $1.90 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.35. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.18 per share. GAAP EPS of $0.35 for Q1 were 67% higher than the prior-year quarter's $0.21 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 46.9%, much better than the prior-year quarter. Operating margin was 8.7%, 130 basis points better than the prior-year quarter. Net margin was 4.0%, 140 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.92 billion. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $8.08 billion. The average EPS estimate is $2.44.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 406 members out of 492 rating the stock outperform, and 86 members rating it underperform. Among 167 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 153 give Royal Caribbean Cruises a green thumbs-up, and 14 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 $37.88.
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