Impairment Charge Hits Royal Caribbean Earnings

Cruise shipRoyal Caribbean Cruises Ltd. (NYSE: RCL) reported fourth-quarter and full-year 2012 results before markets opened this morning.

For the quarter, the cruise ship operator posted adjusted diluted earnings per share (EPS) of $0.10 on revenues of $1.81 billion. In the same period a year ago, the company reported EPS of $0.17 on revenues of $1.27 billion. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.06 and $1.82 billion in revenues.

For the full year, the company posted adjusted EPS of $1.97 on revenues of $7.69 billion, compared with EPS of $2.77 on revenues of $7.54 billion in 2011. The consensus estimate called for EPS of $1.95 on revenues of $7.7 billion.

Royal Caribbean took an impairment charge of $413.9 million for the full year related to its Spanish business Pullmantur and the "lingering impact" of the sinking of its Costa Concordia liner. On a GAAP basis, EPS for the full year totaled $0.08. For the quarter, GAAP earnings computed to a net loss of $1.80 per share.

The company's CEO said:

Excluding the Pullmantur impairment charges, our operating results came in remarkably close to our forecast from a year ago, which is notable given the challenging environment. Looking forward, we see a tale of two continents; North America is doing well, while parts of Europe continue to be a challenge. Nonetheless, we are encouraged that the former will countervail the latter allowing us to drive meaningful yield growth in 2013.

Royal Caribbean's outlook for 2013 calls for EPS in the range of $2.30 to $2.50. The consensus estimate calls for EPS of $2.67 on revenues of $8.07 billion.

The company's shares are up about 0.2% in premarket trading, at $36.85 in a 52-week range of $22.12 to $38.56. Thomson Reuters had a consensus analyst price target of around $38.60 before today's report.

Filed under: 24/7 Wall St. Wire, Casinos & Hotels, Earnings Tagged: RCL
Read Full Story


DJIA 24,083.83 59.70 0.25%
NASDAQ 7,003.74 -3.62 -0.05%
S&P 500 2,639.40 4.84 0.18%
NIKKEI 225 22,215.32 -62.80 -0.28%
HANG SENG 30,328.15 -308.09 -1.01%
DAX 12,422.30 -128.52 -1.02%
USD (per EUR) 1.22 -0.01 -0.55%
USD (per CHF) 0.98 0.00 0.44%
JPY (per USD) 109.41 0.61 0.56%
GBP (per USD) 1.39 -0.01 -0.41%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.