Royal Caribbean Cruises
The 10-second takeaway
For the quarter ended June 30 (Q2), Royal Caribbean Cruises met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew.
Margins expanded across the board.
Royal Caribbean Cruises recorded revenue of $1.88 billion. The 18 analysts polled by S&P Capital IQ expected sales of $1.89 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 $0.23. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. Non-GAAP EPS of $0.23 for Q2 were much higher than the prior-year quarter's $0.03 per share. GAAP EPS were $0.11 for Q2 against -$0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.3%, much better than the prior-year quarter. Operating margin was 6.0%, 70 basis points better than the prior-year quarter. Net margin was 1.3%, 150 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.35 billion. On the bottom line, the average EPS estimate is $1.84.
Next year's average estimate for revenue is $7.95 billion. The average EPS estimate is $2.38.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 414 members out of 499 rating the stock outperform, and 85 members rating it underperform. Among 171 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 157 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 $39.88.
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