Royal Caribbean raises earnings guidance, trims revenue outlook
The cruise company reported adjusted earnings per share of $4.21 as bookings for affected Middle East itineraries recovered.
Royal Caribbean Cruises posted adjusted earnings per share of $4.21, revenue of $4.8 billion and adjusted EBITDA of $1.8 billion, according to the report. Management raised its full-year adjusted earnings guidance to a range of $17.73 to $17.87 per share.
The company also reduced its annual revenue-growth outlook to about 9% from 10%, citing softer bookings associated with prolonged tension in the Middle East. The report said bookings for affected Middle East itineraries subsequently recovered and rose above prior-year levels.
Royal Caribbean’s trailing operating margin was near 27.4%, the report said. Carnival recorded a 13% operating margin in its latest quarter, while Norwegian Cruise Line posted an 11% operating margin.
The report also said Royal Caribbean increased its dividend by 33% over the preceding year and had a $1.8 billion share-buyback authorization. In August, the company completed a $1.25 billion notes offering with a 5.55% coupon and a 2034 maturity. According to the report, the offering enables Royal Caribbean to refinance floating-rate debt and reduce its sensitivity to interest-rate changes.