Cruise vacation company Royal Caribbean (NYSE: RCL) will be reporting earnings this Thursday morning. Here’s what to expect.
Royal Caribbean met analysts’ revenue expectations last quarter, reporting revenues of $4.26 billion, up 13.3% year on year. It was a satisfactory quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations but a slight miss of analysts’ adjusted operating income estimates. It reported 15.12 million passenger cruise days, up 10.5% year on year.
Is Royal Caribbean a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Royal Caribbean’s revenue to grow 11.6% year on year, improving from the 7.3% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Royal Caribbean has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Royal Caribbean’s peers in the consumer discretionary - travel and vacation providers segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Hilton delivered year-on-year revenue growth of 9%, missing analysts’ expectations by 1.4%, and American Airlines reported revenues up 10.8%, topping estimates by 0.6%. American Airlines traded up 5.2% following the results.
Read our full analysis of Hilton’s results here and American Airlines’s results here.
There has been positive sentiment among investors in the consumer discretionary - travel and vacation providers segment, with share prices up 12.5% on average over the last month. Royal Caribbean is down 1.4% during the same time and is heading into earnings with an average analyst price target of $341.38 (compared to the current share price of $257.81).
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