Royal Caribbean Cruises Beats Analyst Estimates on EPS

Royal Caribbean Cruises (NYS: RCL) reported earnings on Feb. 2. 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 and GAAP earnings per share dropped.

Gross margins improved, operating margins contracted, and net margins dropped.

Revenue details
Royal Caribbean Cruises reported revenue of $1.78 billion. The 21 analysts polled by S&P Capital IQ hoped for a top line of $1.79 billion. Sales were 11% higher than the prior-year quarter's $1.60 billion.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.17. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.14 per share. GAAP EPS of $0.17 for Q4 were 11% lower than the prior-year quarter's $0.19 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 45.7%, 1,470 basis points better than the prior-year quarter. Operating margin was 6.0%, 160 basis points worse than the prior-year quarter. Net margin was 2.1%, 60 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.76 billion. On the bottom line, the average EPS estimate is $0.25.

Next year's average estimate for revenue is $7.75 billion. The average EPS estimate is $2.89.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 403 members out of 490 rating the stock outperform, and 87 members rating it underperform. Among 159 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 141 give Royal Caribbean Cruises a green thumbs-up, and 18 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 $37.95.

At the time this article was published 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. 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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