Royal Caribbean Tops Profit Estimate, But Provides Downbeat Outlook

Shares of Royal Caribbean were little changed in premarket trade Thursday, after the cruise ship operator beat third-quarter profit expectations, but provided a downbeat fourth-quarter outlook. Net earnings for the quarter ended Sept. 30 rose to $490.2 million, or $2.19 a share, from $365.7 million, or $1.65 a share, in the year-earlier period. Excluding one-time items, adjusted per-share earnings were $2.20, above the FactSet consensus analyst estimate of $2.19. Revenue increased to $2.39 billion from last year's $2.31 billion, as a rise in passenger ticket sales offset a decline in onboard and other sales. The FactSet consensus revenue estimate was $2.41 billion. The company said it expects fourth-quarter adjusted earnings per share of 35 to 40 cents, below analyst projections of 48 cents. The stock slipped 0.2% in premarket trade. It has rallied 34% year to date, compared with a 4.3% rise in the S&P 500.