In Q2 2016, RCL posted a profit of $1.06 per share.
The company plans to report Q2 results Aug. 1.
William Blair analyst Sharon Zackfia projects net yield to be up roughly 10% in constant currency, reflecting strong demand for both North American and European itineraries and the benefit of approximately 250 basis points from the Pullmantur deconsolidation. Zackfia expects constant-currency net cruise costs excluding fuel to decline 'at least as much as guidance for a 2% decrease.'
The brokerage sees demand and pricing from the key Caribbean and European markets as remaining 'healthy,' while China pricing continues under some pressure due to the China-South Korea tension.
Zackfia expects Royal Caribbean to narrow guidance for its 2017 net yield increase to the higher end of its prior range of up 4.5% to 6% and compared to her up 6% projection.
Citing strong top-line trends and the euro's strengthening, the analyst also expects RCL to lift its 2017 EPS guidance of $7 to $7.20, compared to William Blair's $7.23 estimate.
For the third quarter, Zackfia thinks the strength in seasonal Europe and Alaska cruises will result in a net yield gain at least as good as the consensus of up roughly 4.5%; she projects a 6% increase. She sees Q3 EPS guidance encompassing her $3.32 estimate and the $3.28 consensus.
'Royal’s stock has risen 40% so far this year to 16 times our 2017 EPS estimate, slightly above its three-year average valuation,' Zackfia said in a note. 'With good likelihood of healthy earnings growth continuing at a mid-teens pace in 2018 with potential upside, we continue to like shares, particularly given strong momentum in the business over the past few years.'
William Blair rates RCL 'outperform' (buy).
Shares opened at $114.65 Monday and were up in early trading.
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