Royal Caribbean Cruises Beats on EPS But GAAP Results Lag

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Royal Caribbean Cruises (NYS: RCL) reported earnings on Feb. 4. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Royal Caribbean Cruises met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share shrank to a loss.


Gross margins increased, operating margins dropped, net margins contracted.

Revenue details
Royal Caribbean Cruises chalked up revenue of $1.81 billion. The 21 analysts polled by S&P Capital IQ anticipated a top line of $1.82 billion on the same basis. GAAP reported sales were 1.7% higher than the prior-year quarter's $1.78 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.10. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.05 per share. GAAP EPS were -$1.80 for Q4 versus $0.17 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 46.1%, 1,660 basis points better than the prior-year quarter. Operating margin was 5.8%, 20 basis points worse than the prior-year quarter. Net margin was -21.7%, 2,380 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.90 billion. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $8.08 billion. The average EPS estimate is $2.63.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 409 members out of 492 rating the stock outperform, and 83 members rating it underperform. Among 171 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 157 give Royal Caribbean Cruises a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Royal Caribbean Cruises is outperform, with an average price target of $37.19.

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The article Royal Caribbean Cruises Beats on EPS But GAAP Results Lag originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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