Reuters

(Reuters)

Royal Caribbean Profit Forecast Misses Estimates, Shares Fall

Industries Reuters

Royal Caribbean Cruises Ltd, the second-largest U.S. cruise operator, forecast current-quarter profit well below analysts' expectations, hit by a stronger dollar and higher costs.

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Shares of the company, which also reported lower-than-expected fourth-quarter revenue, fell as much as 6.5 percent in premarket trading on Tuesday.

The Miami, Florida-based company said it expects first-quarter adjusted earnings of about 30 cents per share, missing the average analyst expectation of 46 cents, according to Thomson Reuters I/B/E/S.

The operator of cruise lines such as Royal Caribbean International and Celebrity Cruises said costs related to its expansion in China and the launch of new marketing campaigns for its core brands would hurt profit in the first quarter.

A stronger dollar and higher interest rates are also expected to hurt profit.

Revenue rose 4.4 percent to $1.90 billion in the fourth quarter ended Dec. 31, missing the average analyst estimate of $1.96 billion, according to Thomson Reuters I/B/E/S.

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Net income rose to $206.8 million, or 94 cents per share, from $109.8 million, or 49 cents per share, a year earlier.

Analysts had expected a profit of 92 cents per share. (Reporting by Abhijith G in Bengaluru; Editing by Don Sebastian and Saumyadeb Chakrabarty)