We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Royal Caribbean (RCL) Down 3.1% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for Royal Caribbean (RCL - Free Report) . Shares have lost about 3.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Royal Caribbean due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Royal Caribbean Q4 Earnings Top Estimates, Revenues Lag
Royal Caribbean reported mixed fourth-quarter 2022 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. However, the top and the bottom line increased on a year-over-year basis.
Jason Liberty, president and CEO of Royal Caribbean Group, stated, "Leisure travel strength continues as consumer spend is shifting towards experiences, with cruising remaining an attractive value proposition. The quality demand trends further exhibit the strength of our brands and the growing propensity to cruise."
Q4 Earnings & Revenues
The company reported an adjusted loss per share of $1.12, narrower than the Zacks Consensus Estimate of a loss of $1.37. In the prior-year quarter, it had reported an adjusted loss per share of $4.78 per share.
Quarterly revenues of $2,604 million missed the consensus mark of $2,605 million. In the prior-year quarter, the company reported revenues of $982.2 million. The upside was primarily driven by strong cruising demand, better pricing on close-in demand and strong onboard spending.
Quarterly Highlights
During the fourth quarter of 2022, passenger ticket revenues amounted to $1,702.5 million, up from the prior-year quarter’s revenues of $617.4 million. Onboard and other revenues increased to $901.5 million from $364.9 million reported in the year-ago quarter.
Total cruise operating expenses during the quarter came in at $1,782.4 million compared with $1,135.5 million reported in the prior-year quarter.
Other Financial Information
As of Dec 31, 2022, the company had cash and cash equivalents of approximately $1,935 million compared with $1,566.2 million as of Sep 30, 2022. As of Dec 31, its long-term debt was nearly $21.3 billion compared with $19.4 billion as of Sep 30, 2022.
Booking Update
Booking volumes in fourth-quarter 2022 were much higher than in the same period in 2019. The company reported solid bookings with respect to North America sailings. The company stated that the cumulative booked position remains within historical ranges. It also reported a rise in pre-cruise onboard purchases (at higher prices) on a year-over-year basis. As of Dec 31, 2022, the company had nearly $4.2 billion in customer deposits.
2022 Highlights
Total revenues in 2022 came in at $8,840.5 million compared with $1,532.1 million reported in 2021.
Adjusted EBITDA in 2022 came in at $711.6 million against $(2,597.5) million reported in 2021. In 2022, adjusted earnings per share (EPS) came in at $(7.50) compared with $(19.19) reported in the previous year.
2023 Outlook
In the first quarter of 2023, the company expects depreciation and amortization expenses to be approximately $360 million. Net interest expenses (excluding loss on extinguishment of debt) for the third quarter are expected to be in the range of $330-340 million. The company expects adjusted EPS in the first quarter of 2023 to be in the range of $(0.65)-$(0.85). The Zacks Consensus Estimate for first-quarter loss is pegged at 76 cents.
For 2023, the company expects depreciation and amortization expenses to be in the range of $1,470-$1,490 million. Net interest expenses (excluding loss on extinguishment of debt) for the year are expected to be in the range of $1,310-1,350 million. For 2023, the company anticipates Adjusted EBITDA to surpass 2019 levels. Adjusted EPS during the year is anticipated in the range of $3-$3.60.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Royal Caribbean has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Royal Caribbean has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Royal Caribbean (RCL) Down 3.1% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Royal Caribbean (RCL - Free Report) . Shares have lost about 3.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Royal Caribbean due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Royal Caribbean Q4 Earnings Top Estimates, Revenues Lag
Royal Caribbean reported mixed fourth-quarter 2022 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. However, the top and the bottom line increased on a year-over-year basis.
Jason Liberty, president and CEO of Royal Caribbean Group, stated, "Leisure travel strength continues as consumer spend is shifting towards experiences, with cruising remaining an attractive value proposition. The quality demand trends further exhibit the strength of our brands and the growing propensity to cruise."
Q4 Earnings & Revenues
The company reported an adjusted loss per share of $1.12, narrower than the Zacks Consensus Estimate of a loss of $1.37. In the prior-year quarter, it had reported an adjusted loss per share of $4.78 per share.
Quarterly revenues of $2,604 million missed the consensus mark of $2,605 million. In the prior-year quarter, the company reported revenues of $982.2 million. The upside was primarily driven by strong cruising demand, better pricing on close-in demand and strong onboard spending.
Quarterly Highlights
During the fourth quarter of 2022, passenger ticket revenues amounted to $1,702.5 million, up from the prior-year quarter’s revenues of $617.4 million. Onboard and other revenues increased to $901.5 million from $364.9 million reported in the year-ago quarter.
Total cruise operating expenses during the quarter came in at $1,782.4 million compared with $1,135.5 million reported in the prior-year quarter.
Other Financial Information
As of Dec 31, 2022, the company had cash and cash equivalents of approximately $1,935 million compared with $1,566.2 million as of Sep 30, 2022. As of Dec 31, its long-term debt was nearly $21.3 billion compared with $19.4 billion as of Sep 30, 2022.
Booking Update
Booking volumes in fourth-quarter 2022 were much higher than in the same period in 2019. The company reported solid bookings with respect to North America sailings. The company stated that the cumulative booked position remains within historical ranges. It also reported a rise in pre-cruise onboard purchases (at higher prices) on a year-over-year basis. As of Dec 31, 2022, the company had nearly $4.2 billion in customer deposits.
2022 Highlights
Total revenues in 2022 came in at $8,840.5 million compared with $1,532.1 million reported in 2021.
Adjusted EBITDA in 2022 came in at $711.6 million against $(2,597.5) million reported in 2021.
In 2022, adjusted earnings per share (EPS) came in at $(7.50) compared with $(19.19) reported in the previous year.
2023 Outlook
In the first quarter of 2023, the company expects depreciation and amortization expenses to be approximately $360 million. Net interest expenses (excluding loss on extinguishment of debt) for the third quarter are expected to be in the range of $330-340 million. The company expects adjusted EPS in the first quarter of 2023 to be in the range of $(0.65)-$(0.85). The Zacks Consensus Estimate for first-quarter loss is pegged at 76 cents.
For 2023, the company expects depreciation and amortization expenses to be in the range of $1,470-$1,490 million. Net interest expenses (excluding loss on extinguishment of debt) for the year are expected to be in the range of $1,310-1,350 million. For 2023, the company anticipates Adjusted EBITDA to surpass 2019 levels. Adjusted EPS during the year is anticipated in the range of $3-$3.60.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Royal Caribbean has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Royal Caribbean has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.