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Royal Caribbean (RCL) Q3 Earnings Miss Estimates, Bookings Up
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Royal Caribbean Cruises Ltd. (RCL - Free Report) reported third-quarter 2021 results, wherein both earnings and revenues missed the Zacks Consensus Estimate. Both the metrics lagged the consensus mark for the second consecutive quarter.
Across the company’s five brands since the restart of the operation, more than 500,000 guests sailed. The company anticipates more than 1 million guests to sail by the end of this year. By the end of 2021, it expects 50 out of 61 ships to resume services across its five brands, which represents nearly 100% of its core itineraries and roughly 80% of worldwide capacity.
Ever since the last business update, 11 more ships have returned to operation. It is already operating 40 ships across its five brands, representing 65% of capacity.
Richard D. Fain, chairman and CEO said, “We want to show, in a tangible way, the safety and simplicity of cruising. Our strategy continues to focus on getting the flywheel spinning smooth and fast, so that as we turn the year we will enjoy a stable and predictable platform with which to start the WAVE Period.”
Q3 Earnings & Revenues
The company reported an adjusted loss per share of $4.91, wider than the Zacks Consensus Estimate of a loss of $4.48. In the prior-year quarter, it had reported an adjusted loss per share of $5.62 per share.
Quarterly revenues of $457 million lagged the consensus mark of $713 million. In the prior-year quarter, the company had reported revenues of ($33.7) million. The company’s results have been negatively impacted by the coronavirus pandemic.
Royal Caribbean Cruises Ltd. Price, Consensus and EPS Surprise
During third-quarter 2021, passenger ticket revenues amounted to $280.2 million, up from the prior-year quarter revenues of $3.2 million. Meanwhile, onboard and other revenues increased to $176.8 million from ($37) million reported in the year-ago quarter.
Total cruise operating expenses were $813.7 million compared with $308.6 million at the end of third-quarter 2020.
Other Financial Information
As of Sep 30, 2021, the company had cash and cash equivalents of approximately $3,289.3 million compared with $3,684.5 million as on Dec 31, 2020. As of Sep 30, its long-term debt was nearly $19.9 billion compared with $18 billion as of Dec 31, 2020.
The company announced that as of Sep 30 30, 2021, there are no debt maturities scheduled for the remainder of 2021. For 2022, it has debt maturities of $2.2 billion.
Booking Update
The pandemic has significantly impacted bookings for 2021. However, booking volumes have improved since the slowdown this summer due to the Delta variant. The company received more bookings during third-quarter 2021 compared with the second quarter. New bookings for 2022 during September were robust. The company announced that sailings for 2022 are booked within historical ranges and at higher prices than 2019.
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Royal Caribbean (RCL) Q3 Earnings Miss Estimates, Bookings Up
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported third-quarter 2021 results, wherein both earnings and revenues missed the Zacks Consensus Estimate. Both the metrics lagged the consensus mark for the second consecutive quarter.
Across the company’s five brands since the restart of the operation, more than 500,000 guests sailed. The company anticipates more than 1 million guests to sail by the end of this year. By the end of 2021, it expects 50 out of 61 ships to resume services across its five brands, which represents nearly 100% of its core itineraries and roughly 80% of worldwide capacity.
Ever since the last business update, 11 more ships have returned to operation. It is already operating 40 ships across its five brands, representing 65% of capacity.
Richard D. Fain, chairman and CEO said, “We want to show, in a tangible way, the safety and simplicity of cruising. Our strategy continues to focus on getting the flywheel spinning smooth and fast, so that as we turn the year we will enjoy a stable and predictable platform with which to start the WAVE Period.”
Q3 Earnings & Revenues
The company reported an adjusted loss per share of $4.91, wider than the Zacks Consensus Estimate of a loss of $4.48. In the prior-year quarter, it had reported an adjusted loss per share of $5.62 per share.
Quarterly revenues of $457 million lagged the consensus mark of $713 million. In the prior-year quarter, the company had reported revenues of ($33.7) million. The company’s results have been negatively impacted by the coronavirus pandemic.
Royal Caribbean Cruises Ltd. Price, Consensus and EPS Surprise
Royal Caribbean Cruises Ltd. price-consensus-eps-surprise-chart | Royal Caribbean Cruises Ltd. Quote
Quarterly Highlights
During third-quarter 2021, passenger ticket revenues amounted to $280.2 million, up from the prior-year quarter revenues of $3.2 million. Meanwhile, onboard and other revenues increased to $176.8 million from ($37) million reported in the year-ago quarter.
Total cruise operating expenses were $813.7 million compared with $308.6 million at the end of third-quarter 2020.
Other Financial Information
As of Sep 30, 2021, the company had cash and cash equivalents of approximately $3,289.3 million compared with $3,684.5 million as on Dec 31, 2020. As of Sep 30, its long-term debt was nearly $19.9 billion compared with $18 billion as of Dec 31, 2020.
The company announced that as of Sep 30 30, 2021, there are no debt maturities scheduled for the remainder of 2021. For 2022, it has debt maturities of $2.2 billion.
Booking Update
The pandemic has significantly impacted bookings for 2021. However, booking volumes have improved since the slowdown this summer due to the Delta variant. The company received more bookings during third-quarter 2021 compared with the second quarter. New bookings for 2022 during September were robust. The company announced that sailings for 2022 are booked within historical ranges and at higher prices than 2019.
Zacks Rank & Stocks to Consider
Royal Caribbean carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the leisure space include AMC Entertainment Holdings, Inc. (AMC - Free Report) , Cedar Fair, L.P. (FUN - Free Report) and Six Flags Entertainment Corporation (SIX - Free Report) . All these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMC Entertainment earnings for 2021 are likely to witness growth of 83.3%.
Cedar Fair earnings for 2021 are likely to witness growth of 85.2%.
Six Flags Entertainment has a trailing four-quarter earnings surprise of 190%, on average.