Royal Caribbean Cruises Ltd. (RCL) Thursday reported a better-than-expected increase in first-quarter profit on higher revenues, driven by ticket pricing and improved onboard revenue. Both earnings and revenue for the quarter came in ahead of Wall Street estimates. Royal Caribbean reaffirmed its outlook for fiscal year 2013. Royal Caribbean shares gained six percent on the New York Stock Exchange, following the announcement.
The results come as a boost to the company given that the cruise industry suffered negative media publicity owing to mishaps in the past year and recently as well.
"Ticket revenues were better than expected, costs were well controlled and it was encouraging to see record guest satisfaction and noticeable improvements in onboard spending as a result of our revitalization efforts," said CEO Richard Fain.
The number of passengers who patronized its cruises totaled 1.261 million, down from 1.277 million passengers a year ago. Meanwhile passenger cruise days were higher at 8.84 million, compared to 8.68 million. Occupancy improved to 104.9 percent from 104.6 percent.
Miami, Florida-based Royal Caribbean reported quarterly net income of $76 million or $0.35 per share, compared to $47 million or $0.21 per share last year.
On average, 21 analysts polled by Thomson Reuters expected earnings of $0.21 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew 4 percent to $1.9 billion, from $1.83 billion a year ago. Twenty-one analysts had a consensus revenue estimate of $1.86 billion for the quarter.
For the second quarter, Royal Caribbean expects earnings of $0.10 to $0.15 per share, while analysts currently expect $0.20 per share.
For fiscal year 2013, Royal Caribbean continues to expect earnings of $2.30 to $2.50 per share. Analysts currently estimate earnings of $2.46 per share.
The company said that bookings from North America have remained strong since the beginning of the year and that European demand strengthened in early February and the company expects pricing improvement from the region. Demand from China has weakened somewhat due skirmishes with Japan over territorial waters.
The company's stock is trading at $36.53, up 6.53%, on a volume of 4.3 million shares.
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