Tag Archives: stock market

Royal Caribbean Increases Financial Guidance for 2024

Posted on by
Reply

Independence and Symphony of the Seas in San Juan, Puerto Rico photo credit Spacejunkie2 Flickr

Royal Caribbean Group today provided an update on demand and updated its 2024 guidance.

The company said it continues to be very encouraged about the demand and pricing environment for 2024.

Since its most recent update on its Q4 2023 earnings call, the WAVE booking season has exceeded the company’s initial expectations, with the first five weeks of the year resulting in the best WAVE booking weeks in the company’s history.

“Bookings have been significantly higher than during the same period last year, with the back half of the year up by more than the front half. For 2024, all four quarters and all key products are booked ahead of the same time last year in both rate and volume. Consumer spending for onboard purchases continue to exceed prior years driven by greater participation at higher prices, indicating quality and healthy future demand,” the company said in a statement.

“Since our last earnings call, robust demand for our vacation experiences has significantly exceeded our initial expectations,” said Jason Liberty, president and CEO of Royal Caribbean. “As a result, we are increasing our 2024 guidance on stronger revenue outlook, and we expect to achieve all Trifecta goals in 2024. Trifecta marks an important milestone as we remain intensely focused on delivering a lifetime of vacations and priceless memories for our guests while delivering exceptional long-term shareholder value.”

As a result of the strong WAVE season, the company is increasing its 2024 Adjusted EPS guidance by $0.40 compared to its February guidance. For the full year, Adjusted EPS is now expected to be $9.90 to $10.10 driven by an increase in constant currency net yield growth of approximately 100 bps compared to the February guidance. Approximately $0.15 of the full year increase in adjusted EPS is driven by an improved revenue outlook for the first quarter of 2024. The company now expects to achieve all Trifecta goals in 2024.

Royal Caribbean Shares Soar As Bookings Rise On Vaccination News

Posted on by
Reply

Port of the Bahamas

by Praveen Paramasivam  (Reuters) – Royal Caribbean Group said on Monday it was seeing an uptick in future bookings, following a disastrous year for the cruise operator, as travel enthusiasts look to sail again at a time governments globally have started mass vaccinations.

The company’s shares, down 44% last year, soared 9% in morning trading (and is up 24% in the past five trading days), as Royal Caribbean said it recorded a 30% increase in new bookings since the beginning of the year when compared to November and December.

Analysts have also tipped Royal Caribbean and its peers Carnival Corp and Norwegian Cruise Line Holdings Ltd to resume voyages gradually in the back half of this year, after the pandemic-triggered months-long halt.

“Now after 11 months of the pandemic, I think we all know that COVID fatigue is real. People are clamouring for the opportunity to have experience outside their homes,” Chief Executive Officer Richard Fain said on an earnings call.

Royal Caribbean said bookings for the first half of 2022 were within historical ranges and at higher prices, with some on Reddit and Twitter saying they were itching to go on cruises again.

However, the operator of “Symphony of the Seas” cruise posted a net attributable loss of $1.37 billion for the quarter ended Dec. 31, taking its annual loss to $5.8 billion.

Royal Caribbean’s total revenue for the quarter was $34.1 million, compared with analysts’ estimates of $35.6 million, according to IBES data from Refinitiv.

On an adjusted basis, the company lost $5.02 per share. Analysts had expected a loss of $5.20.

Miami-based Royal Caribbean forecast a net loss for its first quarter and the 2021 fiscal year.

Royal Caribbean latest to warn of coronavirus profit impact

Posted on by
Reply

Image result for royal caribbean ships in china

The wonder of the Seas due for China deployment 2020

Royal Caribbean Cruises has joined larger rival Carnival Corporation in warning of the potential “material” financial impact of the ongoing coronavirus outbreak.

The world’s second-largest cruise company has now cancelled a total of 18 sailings in south-east Asia and also modified several itineraries as a result of travel restrictions in place and “related circumstances.”

The number of cancelled cruises has risen from the eight out of China reported by the company last week.

RCC also reported “softer bookings” across the broader business, not just Asia.

It is in regular communications with global health authorities after China and other countries moved “aggressively” to contain the spread of the virus.

Like other cruise firms, the owner of brands such as Royal Caribbean International, Celebrity Cruises, Silversea and Azamara, has implemented measures to protect passengers and crew.

These include denying boarding to those that have travelled from, to or through mainland China or Hong Kong in the past 15 days and performing mandatory specialised health screenings on at-risk passengers and crew.

The company “is assessing the developments constantly and will update these measures as needed”.

RCC added: “Taken together, these measures have an estimated impact on the company’s financial performance for 2020 of approximately $0.65 per share.

“While not currently planned, if the company was to cancel all of its remaining sailings in Asia through the end of April, it would impact 2020 financial performance by an additional $0.55 per share.

“There are still too many variables and uncertainties to make a reasonable forecast for 2020.

“While the early impact due to concerns about the coronavirus is mainly related to Asia, recent bookings for our broader business have also been softer.

“If the travel restrictions and concerns over the outbreak continue for an extended period of time, they could materially impact the company’s overall financial performance.”

Chairman and chief executive Richard Fain said: “It is important that every organisation acts responsibly, and we have already taken aggressive steps to minimise risk through boarding restrictions and itinerary changes.

“Our shipboard and shoreside teams have been working tirelessly through these circumstances and I want to thank them for all of their extraordinary efforts. We appreciate our responsibility to our guests and to each other, and our focus on public health is unwavering.”

Carnival Corporation, owner of quarantined ship Diamond Princess in Japan after an outbreak of coronavirus on board, was the first to warn of a “material impact” on its financial results.