Cruise vacation company Royal Caribbean (NYSE: RCL) will be reporting earnings this Tuesday morning. Here’s what investors should know.
Royal Caribbean met analysts’ revenue expectations last quarter, reporting revenues of $4.54 billion, up 10.4% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but revenue in line with analysts’ estimates. It reported 14.28 million passenger cruise days, up 7.9% year on year.
Is Royal Caribbean a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Royal Caribbean’s revenue to grow 5.7% year on year to $5.16 billion, slowing from the 17.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.68 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Royal Caribbean has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Royal Caribbean’s peers in the travel and vacation providers segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Delta delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 3.8%, and United Airlines reported revenues up 2.6%, in line with consensus estimates. Delta’s stock price was unchanged after the resultswhile United Airlines was down 5.8%.
Read our full analysis of Delta’s results here and United Airlines’s results here.
Investors in the travel and vacation providers segment have had steady hands going into earnings, with share prices flat over the last month. Royal Caribbean is down 3% during the same time and is heading into earnings with an average analyst price target of $355.74 (compared to the current share price of $317).
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