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What's in the Cards for Royal Caribbean (RCL) Q2 Earnings?
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Royal Caribbean Cruises Ltd. (RCL - Free Report) is likely to register a sharp decline in the bottom line when it reports second-quarter 2020 results. In the last reported quarter, the company delivered a negative earnings surprise of 82.7%.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter is pegged at a loss of $4.71, against earnings of $2.54 per share in the prior-year quarter. Over the past 30 days, the company’s earnings estimates have witnessed sharp downward revisions. The Zacks Consensus Estimate for revenues stands at $117.6 million, indicating a decline of 95.8% from the year-ago reported figure.
Factors to Note
Royal Caribbean’s second-quarter results are likely to reflect sharp decline owing to cruise cancellations. Notably, the company had suspended global cruise operation beginning Mar 13, 2020 on account of the pandemic. Due to the ongoing crisis scenario, bookings for 2020 have declined significantly. The company is anticipated to report net loss on both a GAAP and adjusted basis for the second quarter and 2020 fiscal year.
Increase in expenses might get reflected in the second-quarter results. Earlier, the company had announced that during suspension of operations. The company estimates cash burn between $250 million to $275 million per month. This includes ongoing ship operating expenses, administrative expenses, debt service, hedging costs and anticipated necessary CapEx.
Despite the company’s strong fundamentals and growth prospect, the coronavirus pandemic has been taking a toll on its performance.
Royal Caribbean Cruises Ltd. Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for Royal Caribbean this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Royal Caribbean has an Earnings ESP of -1.56%.
Zacks Rank: The company has a Zacks Rank #4 (Sell).
Stock With Favorable Combinations
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.
Electronic Arts Inc. (EA - Free Report) has an Earnings ESP of +27.86% and a Zacks Rank #3, at present.
Pool Corporation (POOL - Free Report) has an Earnings ESP of +6.88% and a Zacks Rank of 1.
PlayAGS, Inc. (AGS - Free Report) has an Earnings ESP of +4.36% and a Zacks Rank #2.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
What's in the Cards for Royal Caribbean (RCL) Q2 Earnings?
Royal Caribbean Cruises Ltd. (RCL - Free Report) is likely to register a sharp decline in the bottom line when it reports second-quarter 2020 results. In the last reported quarter, the company delivered a negative earnings surprise of 82.7%.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter is pegged at a loss of $4.71, against earnings of $2.54 per share in the prior-year quarter. Over the past 30 days, the company’s earnings estimates have witnessed sharp downward revisions. The Zacks Consensus Estimate for revenues stands at $117.6 million, indicating a decline of 95.8% from the year-ago reported figure.
Factors to Note
Royal Caribbean’s second-quarter results are likely to reflect sharp decline owing to cruise cancellations. Notably, the company had suspended global cruise operation beginning Mar 13, 2020 on account of the pandemic. Due to the ongoing crisis scenario, bookings for 2020 have declined significantly. The company is anticipated to report net loss on both a GAAP and adjusted basis for the second quarter and 2020 fiscal year.
Increase in expenses might get reflected in the second-quarter results. Earlier, the company had announced that during suspension of operations. The company estimates cash burn between $250 million to $275 million per month. This includes ongoing ship operating expenses, administrative expenses, debt service, hedging costs and anticipated necessary CapEx.
Despite the company’s strong fundamentals and growth prospect, the coronavirus pandemic has been taking a toll on its performance.
Royal Caribbean Cruises Ltd. Price and EPS Surprise
Royal Caribbean Cruises Ltd. price-eps-surprise | Royal Caribbean Cruises Ltd. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Royal Caribbean this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Royal Caribbean has an Earnings ESP of -1.56%.
Zacks Rank: The company has a Zacks Rank #4 (Sell).
Stock With Favorable Combinations
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.
Electronic Arts Inc. (EA - Free Report) has an Earnings ESP of +27.86% and a Zacks Rank #3, at present.
Pool Corporation (POOL - Free Report) has an Earnings ESP of +6.88% and a Zacks Rank of 1.
PlayAGS, Inc. (AGS - Free Report) has an Earnings ESP of +4.36% and a Zacks Rank #2.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>