Royal Caribbean Cruises Beats on Both Top and Bottom Lines
Royal Caribbean Cruises (NYS: RCL) reported earnings on April 20. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Royal Caribbean Cruises beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Royal Caribbean Cruises recorded revenue of $1.83 billion. The 20 analysts polled by S&P Capital IQ predicted revenue of $1.80 billion on the same basis. GAAP reported sales were 9.7% higher than the prior-year quarter's $1.67 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.21. The 19 earnings estimates compiled by S&P Capital IQ averaged $0.15 per share. GAAP EPS of $0.21 for Q1 were 40% lower than the prior-year quarter's $0.35 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.6%, 250 basis points worse than the prior-year quarter. Operating margin was 7.4%, 150 basis points worse than the prior-year quarter. Net margin was 2.6%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.83 billion. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $7.82 billion. The average EPS estimate is $1.98.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 407 members out of 498 rating the stock outperform, and 91 members rating it underperform. Among 152 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 132 give Royal Caribbean Cruises a green thumbs-up, and 20 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 $35.31.
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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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