Royal Caribbean third quarter revenue is down over last year, still beats expectations

Skift Take

Bookings are almost back from the industry slowdown due to the Costa Concordia accident, and Royal Caribbean expects a strong fourth quarter driven by increased last-minute bookings and decreased costs.

— Samantha Shankman

Royal Caribbean Cruises Ltd. (RCL) announced lower third-quarter 2012 net income of $367.8 million, or $1.68 per share, versus $399.0 million, or $1.82 per share, in the prior-year quarter. On average, 19 analysts polled by Thomson Reuters expected earnings per share of $1.45 for the quarter. Analysts’ estimates typically exclude one-time items.

2005 Royal Caribbean Logo

Royal Caribbean’s bookings were negatively impacted by the Costa Concordia sinking. Photo by Mike Burton.

Total revenues declined to $2.23 billion, from $2.32 billion a year earlier. Analysts estimated revenues of $2.21 billion for the quarter. For the fourth quarter of 2012, NCC excluding fuel are expected to be up about 1% on a constant-currency basis and flat to up 1% on an as-reported basis. Excluding the deployment initiatives and changes to the company’s international distribution system, NCC excluding fuel are likely to be nearly flat on both a constant-currency and as-reported basis.

Additionally, the company has raised its full-year earnings per share guidance by $0.15 to a range of $1.85 – $1.95, driven mainly by stronger than anticipated revenue and expense reduction. The remaining $0.03 per share improvement is principally due to currency benefits net of oil price increases.

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Copyright © 2012 RTTNews. Provided by an company.

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