Royal Caribbean's Stock Surges After Earnings Beat And Raised Outlook

Shares of Royal Caribbean Cruises Ltd. rallied 2.2% in premarket trade Tuesday, after the cruise operator beat second-quarter profit and sales expectations and raised its earnings outlook. The net profit for the quarter to June 30 rose to $369.5 million, or $1.71 a share, from $229.9 million, or $1.06 a share, in the same period a year ago. The FactSet EPS consensus was $1.66. Total revenue increased to $2.20 billion from $2.11 billion, topping the FactSet consensus of $2.19 billion, as better-than-expected passenger ticket revenue offset a miss in onboard and other revenue. Looking ahead, Royal Caribbean expects third-quarter adjusted EPS of $3.45, above the FactSet consensus of $3.29, and raised its 2017 EPS outlook to a range of $7.35 to $7.45 from $7.00 to $7.20. The stock has soared 38% year to date through Monday, while the S&P 500 has gained 10%.