RCL shoots past Q2 expectations, lifts full-year profit outlook

Analysts had expected a Q2 profit of $1.67 per share, above the company guidance of $1.60 to $1.65.

The better than anticipated quarter combined with favorable booking trends is driving an increase in the full year adjusted EPS guidance to a range of $7.35 to $7.45, up from $7 to $7.20 previously and ahead of the $7.26 consensus.

Net revenue yield was up 11.5% in constant currency and 9.9% as reported. US GAAP and adjusted net income was $369.5m, up from US GAAP income of $229.9m, or $1.06 per share, and adjusted net Income of $235.2m, or $1.09 per share, in Q2 2016. Revenues rose to $2.2bn from $2.1bn.

'Our brands are executing beautifully, keeping the business in an exceptionally strong position,' Royal Caribbean chairman and ceo Richard Fain said. Strong close-in demand bolstered the quarter, he added, and the company will see further uplift for the balance of the year.

In raising its full-year guidance, RCL said bookings continue to be 'very robust.'

The company's booked position for the remainder of 2017 continues to set new records. Looking further ahead, the booked position for the next 12 months is also strong, up on both rate and volume, versus the same time last year. Net yields for the year on a constant-currency basis are expected to increase 5.5% to 6%, up relative to prior guidance due to the better Q2 results and stronger trends for the balance of the year.

'Demand has remained strong, and we have captured the related revenue opportunity,' cfo and evp Jason Liberty said. 'These demand trends and continued cost discipline have resulted in the highest second quarter earnings in company history and have put us in position for another record year and achieving our Double-Double targets.'

Rolled out in 2014, 'Double-Double' is RCL's strategy to achieve double-digit return on invested capital and double earnings per share within three years.

In the third quarter, strong demand trends for Europe and North America cruises are driving improvement over an already strong previous year. Net yield is projected to increase 4% to 4.5% in constant currency. Q3 EPS is expected to be approximately $3.45, ahead of Wall Street's $3.29 consensus forecast.

Add Seatrade Cruise News to your Google News feed.