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Royal Caribbean Actually Logs Sales, Pushing Shares of Cruise Lines Higher

Published 2020-08-10, 11:49 a/m
© Reuters.
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By Christiana Sciaudone

Investing.com -- Royal Caribbean (NYSE:RCL) jumped 10% Monday after reporting higher-than-expected revenue.

Sales of $175 million for the quarter compares to the forecast of $47 million, according to analysts tracked by Investing.com.

Shares of rivals also rose: Norwegian Cruise Line (NYSE:NCLH) Holdings was up 8.3% and Carnival (NYSE:CUK) Corporation increased 6.9%.

Bookings for 2020 are "meaningfully lower than same time last year and at lower prices," but the booked position for 2021 is "trending well and is within historical ranges." Royal Caribbean's German joint venture, Tui, has returned to operations.

Approximately 60% of the 2021 bookings are new. Pricing for next year's bookings are relatively flat year-over-year when including the negative yield impact of bookings made with future cruise credits, and slightly higher year-over-year when excluding them.  

The company expects to incur a net loss on both a U,S, GAAP and adjusted basis for its third quarter and the 2020 fiscal year, the extent of which will depend on the timing and extent of the return to service. Cruises on Royal Caribbean suspended operations on March 13 as a result of the spread of Covid-19.

The company reported GAAP net loss for the second quarter of $1.6 billion, or $7.83 per share, compared to GAAP net income of $472.8 million, or $2.25 per share in the prior year.       

"We continue to take substantial actions to bolster our financial position," said Chief Financial Officer Jason T. Liberty. "We have accessed the capital market in an opportunistic manner and continue to aggressively manage our spend."

   

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