Visit our travel agent friends at MEI Travel

Is a drop in European demand cause for concern?

12 Aug 2010

If there's one cruise company that has placed the most resources in the idea that European cruise demand is what will drive profits, it's been Royal Caribbean.  Over the past couple of years, Royal Caribbean has been moving more and more of their ships to Europe to meet the perceived demand for cruise ships as well as the strong Euro.  Yesterday, cruise stock prices fell on the New York Stock Exchange on concerns about demand in Europe and on a drop in the broader stock market.

Royal Caribbean stock dropped 4.9 percent to $26.74 after trading on Wednesday and competitor cruise line stocks followed as well. The reason for the drop in price was a day earlier, Europe's biggest travel company, TUI Travel, said strong booking patterns seen in early May were not sustained during the early summer period.

"TUI Travel (Plc's) cautionary comments coupled (with) recent comments from European-based consumer staple companies of slowing demand cannot be dismissed and will bear ongoing close monitoring," Wells Fargo analyst Timothy Conder said in a research note Wednesday.

All isn't lost quite yet, as Wells Fargo Analyst Timothy Conder also said that booking and pricing trends for European-based cruises remained "encouraging."

Royal Caribbean second quarter earnings report spikes stock price 6.35%

09 Aug 2010

Two weeks ago, Royal Caribbean (NYSE:RCL) announced better than expected earnings for its second quarter report with EPS of $0.28 on sales of $1.6 billion, beating EPS estimates by $0.09 and missing revenues estimates by $19 million.  Since then, the Royal Caribbean stock price has risen 6.35%, from $27.56 to $29.31 in the last 15 days.

This is obviously great news for those who own Royal Caribbean stock as well as fans of the company, given that a stronger stock price translates out to a stronger company overall.

Royal Caribbean had sales growth of 18.7% during the last fiscal year. The company reported $6.3 billion in sales over the past 12 months and is expected to report $7.5 billion in sales in the next fiscal year according to SmarTrend.

Second quarter report spikes Royal Caribbean stock

23 Jul 2010

We reported yesterday Royal Caribbean's second quarter 2010 earnings report and the news was so good that it gave the Royal Caribbean stock a nice push upwards.  Investors were happy to see shares of Royal Caribbean Cruises closed up 12 percent Thursday on positive earnings news for the second quarter and a positive outlook for the rest of the year.  

The price of Royal Caribbean stock closed up $2.98 to $27.50 at the end of trading on Thursday.  Cruise companies were battered a year ago amid the recession, and shares of Royal Caribbean and Carnival were hampered recently by fears of a double dip recession. Royal Caribbean's outlook Thursday helped put those fears to rest.

Royal Caribbean reports improved second quarter earnings

22 Jul 2010

Good news for Royal Caribbean investors, Royal Caribbean Cruises Ltd. today announced improved earnings for 2010's second quarter as well as providing higher guidance for the third quarter and full year 2010.

Royal Caribbean Cruises reported a net income for the second quarter 2010 of $60.5 million, or $0.28 per share, compared to a net loss of $35.1 million, or ($0.16) per share, in second quarter of 2009.  In addition, revenues improved to $1.6 billion in the second quarter of 2010 compared to $1.3 billion in the second quarter of 2009, as a result of capacity increases and yield improvements. Net Yields for the second quarter of 2010 increased 4.9% despite the impact of the stronger US Dollar.

Improved fuel consumption efforts resulted in significantly better fuel consumption of 318,000 metric tons during the second quarter. At-the-pump pricing (including the benefit of the company's hedging) was virtually unchanged. Altogether, the quarter's fuel expenditures were approximately $6 million better than previous calculations.

  • Business conditions have remained on target in each of the company's main markets while improved cost control has enabled the company to raise its earnings guidance for the year
  • Operating costs were lower than expected due mainly to strong cost control, energy conservation measures, expense timing and currency fluctuations
  • Second quarter Net Yields increased 4.9%, (5.4% on a Constant Currency basis)
  • Second quarter Net Cruise Costs per APCD, "NCC", declined 2.8%, (2.0% on a Constant Currency basis)
  • Net Yields are expected to increase approximately 4% in the third quarter and 3% - 4% for the year as a whole, (7% and 4% - 5% respectively on a Constant Currency basis)
  • NCC are expected to be down 1% for the third quarter and down approximately 1% - 2% for the full year
  • EPS expectation for the full year 2010 has been increased by $0.10 to $2.25 to $2.35. Third quarter 2010 EPS is expected to be in the range of $1.52 to $1.57.

Royal Caribbean Chairman and Chief Executive Officer Richard D. Fain, also commented on the progress for the quarter, "What a difference a year makes. It is gratifying to post another solid quarter with improvement in yields and strong cost control. Despite ongoing uncertainty with the economy, our profitability continues to improve and our booking environment continues to be remarkably stable. We remain focused on strengthening our financial position and I am encouraged about the tremendous global response to our brands."

Brian J. Rice, Executive Vice President and Chief Financial Officer talked about the reasons for a good second quarter, "Demand for our cruises remains on track with our earlier projections. The strengthening of the US Dollar will clearly result in a reduction of our reported yields, but also provides a corresponding reduction in expenses. Most importantly, our continued focus on cost controls and efficiency is driving improved earnings."

Reminder: Royal Caribbean 2nd Quarter Earnings Report tomorrow at 10am

21 Jul 2010

For those interested, a quick reminder that Royal Caribbean will announce their second quarter 2010 financial earnings report Thursday, July 22 at 10am Eastern time.  Analysts consensus calls for a profit of $0.18 a share on $1.62 billion revenue.  For comparison, a year ago for the quarter, Royal Caribbean reported $-0.16 a share.

The report should take about an hour and you can listen to it live on the Royal Caribbean Investor web site or by phone, please dial (877) 663-9606 in the US and Canada. International phone calls should be made to (706) 758-4628. There is no passcode or meeting number. 

Royal Caribbean Schedules its second quarter earnings report for July 22

15 Jul 2010

Royal Caribbean has scheduled its second quarter earnings report for 2010 for July 22, 2010 at 10am eastern. If you're interested in hearing the report live, the call will be available at Royal Caribbean's investor relations web site,

If you want to listen to the call by phone, please dial (877) 663-9606 in the US and Canada. International phone calls should be made to (706) 758-4628. There is no passcode or meeting number. A replay of the webcast will be available at the same site for a month following the call.

Subscribe to Financial News