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Royal Caribbean Withdraws 2020 View on Coronavirus Scare
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The coronavirus outbreak, which has taken the shape of a global pandemic, has forced Royal Caribbean Cruises Ltd. (RCL - Free Report) to withdraw the first quarter and 2020 guidance. Travel warnings and cruise cancellations have started taking a toll on the company. In the past month, the company’s shares have slumped 55.9% compared with the industry’s decline of 38.6%.
Royal Caribbean, which had earlier said that the first quarter and 2020 guidance did not include the impact of the coronavirus outbreak, has withdrawn its guidance due to the “uncertainty of changes in the magnitude, duration and geographic reach of coronavirus”.
China is of the utmost importance to the Royal Caribbean brand. According to the 2020 Cruise Industry News Annual Report, China constitutes 7.6% of the global cruise industry. Notably, the outbreak of the COVID-19 virus resulted in the cancellation of a number of voyages in other parts of Asia.
While the cruise business from China and Asia fell significantly, bookings for the broader business outside Asia have also softened recently, thanks to travel restrictions to contain the spread of the contagion.
Other major cruise operators like Carnival Corporation & Plc (CCL - Free Report) and Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) have witnessed a sharp decline of 45.5% and 62.2% in the past month, respectively.
Moreover, due to the outbreak of the COVID-19 virus, the company increased its revolving credit capacity by $550 million, boosting its liquidity position. The company is looking to improve liquidity by at least another $1.7 billion in 2020 by decreasing capital expenditures and operating expenses, and taking other actions.
WW International has an impressive long-term earnings growth rate of 15%.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >>
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Royal Caribbean Withdraws 2020 View on Coronavirus Scare
The coronavirus outbreak, which has taken the shape of a global pandemic, has forced Royal Caribbean Cruises Ltd. (RCL - Free Report) to withdraw the first quarter and 2020 guidance. Travel warnings and cruise cancellations have started taking a toll on the company. In the past month, the company’s shares have slumped 55.9% compared with the industry’s decline of 38.6%.
Royal Caribbean, which had earlier said that the first quarter and 2020 guidance did not include the impact of the coronavirus outbreak, has withdrawn its guidance due to the “uncertainty of changes in the magnitude, duration and geographic reach of coronavirus”.
China is of the utmost importance to the Royal Caribbean brand. According to the 2020 Cruise Industry News Annual Report, China constitutes 7.6% of the global cruise industry. Notably, the outbreak of the COVID-19 virus resulted in the cancellation of a number of voyages in other parts of Asia.
While the cruise business from China and Asia fell significantly, bookings for the broader business outside Asia have also softened recently, thanks to travel restrictions to contain the spread of the contagion.
Other major cruise operators like Carnival Corporation & Plc (CCL - Free Report) and Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) have witnessed a sharp decline of 45.5% and 62.2% in the past month, respectively.
Moreover, due to the outbreak of the COVID-19 virus, the company increased its revolving credit capacity by $550 million, boosting its liquidity position. The company is looking to improve liquidity by at least another $1.7 billion in 2020 by decreasing capital expenditures and operating expenses, and taking other actions.
Zacks Rank & a Key Pick
Royal Caribbean currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the leisure space is WW International, Inc. (WW - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
WW International has an impressive long-term earnings growth rate of 15%.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>