Royal Caribbean Shares Slump After Company Provides Soft Outlook
Royal Caribbean Cruises Ltd. shares slumped almost 6% in premarket trade Monday, after the company lowered the outlook for 2015 citing a strong dollar and rising fuel costs. The cruise line said it had net income of $45.2 million, or 20 cents a share, in the first quarter, up from $26.5 million, or 12 cents a share, in the year-earlier period. Adjusted EPS was also 20 cents a share, ahead of the FactSet consensus of 13 cents. But revenue of $1.82 billion was below the $1.89 billion booked a year ago, and below the FactSet consensus of $1.86 billion. And the company said it is lowering its full-year outlook to $4.45 to $4.65 from a prior $4.65 to $4.85. "The strengthening of the US dollar and the increase in fuel prices since our January guidance is expected to negatively impact earnings by $0.36," the company said in a statement. "Constant-currency net yields are expected to be in the range of up 2.5% to 4.0%, a slight reduction from previous guidance mainly due to the impact of the stronger US dollar on the purchasing power of our non-US guests." Shares are down 4.2% in the year so far, while the S&P 500 has gained 1.8%.
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