Royal Caribbean rises on annual profit forecast lift
RCL•Shares rise after forecast boost
Shares of cruise operator Royal Caribbean RCL.N were up as much as 5% to $321.57, reversing premarket losses, after the company raised its annual adjusted EPS forecast to between $17.73 and $17.87.
The company now expects fuel expenses of $1.34 billion, versus a previous forecast of $1.35 billion. Q2 revenue rose 6%, narrowly surpassing estimates, while adjusted EPS beat expectations, according to data compiled by LSEG.
Revenue outlook trimmed on booking impact
Analysts at Jefferies said that while some "modest, near-term" impact on bookings bears vigilance, improvements in fuel and ex-fuel costs, among others, drove a positive adjusted EPS revision.
However, the company cut its annual revenue forecast, accounting for a modest booking impact for select itineraries primarily due to prolonged geopolitical activity. It now sees annual revenue growing 9%, compared with a previous forecast of a 10% rise.
Peers Norwegian Cruise Line NCLH.N and Carnival CCL.N were also up about 3%.
Up to the last close, RCL was up 9.4% year to date, while NCLH and CCL were down about 10% and , respectively.
