Royal Caribbean Profit Forecast Misses Estimates, Shares Fall

Adjusted Net Income for the full year 2015 was $1.07 billion, or $4.83 per share, compared to Adjusted Net Income of $755.7 million, or $3.39 per share, for the full year 2014. Zacks Investment Research upgraded Royal Caribbean Cruises from a hold rating to a buy rating and set a $111.00 target price on the stock in a report on Tuesday, October 27th. The business had revenue of $1.90 billion for the quarter, compared to analyst estimates of $1.96 billion.

Shares of the company dropped $12.82, or 15%, to $71.70 Tuesday after telling investors profit in the current quarter and year would fall short of what analysts were expecting. Royal Caribbean Cruises expects a net profit to increase in the range of 2% to 4% on a constant-currency basis and flat to up 2% on an as-reported basis for the full year. Revenue was reported as $8.3 billion. Royal Caribbean Cruises Ltd. (NYSE:RCL) now has an ABR of 1.31 heading into today’s announcement. Churchill Management now owns 55,524 shares of the company’s stock worth $5,620,000 after buying an additional 25,671 shares during the period.

Royal Caribbean, whose brands also include Celebrity and other lines as well as its namesake cruises, said bookings for 2016 are roughly equal to record levels previous year and at higher rates. During last six month period, the net percent change held by insiders has seen a change of -26.09%. Finally, Citigroup Inc. reaffirmed a buy rating on shares of Norwegian Cruise Line Holdings in a research note on Thursday, December 10th. LLC bought a new position in Royal Caribbean Cruises during the fourth quarter worth $58,292,000. The brokerage presently has a “positive” rating on the stock. During the same quarter in the previous year, the company posted $0.32 EPS. That’s below the $6.12 a share analysts were calling for. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 2% would appear considerably attractive if that yield is sustainable. Orrstown Financial Services Inc. now owns 8,311 shares of the company’s stock worth $841,000 after buying an additional 411 shares during the period. Reynolds Capital Management now owns 4,900 shares of the company’s stock valued at $496,000 after buying an additional 1,200 shares during the period. Russell Frank Co increased its stake in Royal Caribbean Cruises by 112.9% in the fourth quarter. And this summer, TUI Cruises, the company’s German joint venture, will take delivery of its third new build, Mein Schiff 5. The company’s combined capacity in these markets is estimated at approximately 13.5 percent for 2016. Notably, Royal Caribbean’s North American product, combined with strong demand for its Northern Europe and Asia sailings are expected to more than offset the pricing challenges cited above.

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