Royal Caribbean Cruises Ltd. raised its earnings outlook for the
year on Friday as positive currency impacts and favorable fuel
rates powered a 34% rise in profit during its latest quarter.
Miami-based Royal Caribbean, which operates its namesake line as
well as Celebrity, now expects full-year adjusted earnings of $4.65
to $4.75, above its previous April guidance of $4.45 to $4.65.
Based on factors including fuel and foreign exchange rates, the
company expects adjusted earnings for the current quarter to come
in at around $2.70 a share, while analysts expect $2.78.
Overall, Royal Caribbean reported a profit of $185 million, or
84 cents a share, up from $137.7 million, or 62 cents a share,
during the same period a year earlier.
Revenue rose 4% to $2.06 billion. The company beat its earnings
forecast for the quarter of 70 cents a share. Analysts polled by
Thomson Reuters had expected revenue of $2.06 billion.
The company also reported that foreign currency translation
adjustments contributed some $11.7 million to income.
Passenger ticket sales in the latest quarter climbed 3.6% to
$1.51 billion. Fuel expenses dipped almost 17% to $202.6 million
from $242.8 million.
During the latest quarter the number of passengers increased
2.4% while the number of passenger cruise days edged upward
4.8%.
Royal Caribbean said bookings since April have been brisk and
that the Caribbean market offset softness in Latin America.
"Momentum in the Caribbean continues at a solid pace, and our
strong booked position in the third and fourth quarters gives us
confidence as we move through the second half of 2015," said Jason
T. Liberty, chief financial officer of the cruise ship
operator.
In recent years, Royal Caribbean has also aggressively expanded
operations in China, elevating the Asian country to one of its top
markets.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
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