Royal Caribbean reports record First Quarter Earnings.

Here's the first couple of paragraphs, press release is really long, don't want to tie up CCs space.

Royal Caribbean Reports Record First Quarter Earnings And Increases Full Year Guidance

MIAMI, April 26, 2018 /PRNewswire/ -- Royal Caribbean Cruises Ltd. (NYSE: RCL) today reported record first quarter results and increased its outlook for the full year. The company reported first quarter US GAAP earnings of $1.02 per share and Adjusted earnings of $1.09 per share beating guidance due to better revenue. Full year Adjusted earnings guidance is increased by $0.15 to a range of $8.70 to $8.90 per share.

KEY HIGHLIGHTS

Results for the First Quarter 2018:

• US GAAP Net Income was $218.7 million or $1.02 per share and Adjusted Net Income was $232.8 million or $1.09 per share versus US GAAP and Adjusted Net Income of $214.7 million or $0.99 per share in 2017.
  
• Gross Yields were up 3.1% in Constant-Currency (up 5.1% As-Reported). Net Yields were up 4.9% in Constant-Currency (up 7.0% As-Reported).
  
• Gross Cruise Costs per APCD increased 5.0% in Constant-Currency (up 6.1% As-Reported). Net Cruise Costs ("NCC") excluding Fuel per APCD were up 11.2% in Constant-Currency (up 12.5% As-Reported).
  

Full Year 2018:

• Overall, the company's booked position remains at a record level, better than last year in both rate and volume.
  
• Adjusted earnings are expected to be in the range of $8.70 to $8.90 per share, up $0.15 from initial guidance.
  
• Net Yields are expected to increase 2.0% to 3.75% in Constant-Currency (up approximately 4.0% As-Reported).
  
• NCC excluding Fuel per APCD are expected to be up approximately 2.5% in Constant-Currency (up 3.0% to 3.5% As-Reported).
  

"This year is proving to be another strong year with all our brands firing on all cylinders," said Richard D. Fain, chairman and CEO. "The market continues to support our growth as our people keep focused on delivering our targets and goals. The strength of this market plus our new ships in 2018 (Symphony of the Seas, Azamara Pursuit, Mein Schiff 1 and Celebrity Edge),position us nicely for 2019 as well

With the new program slated to give every employee some stock, they must be hoping that trend continues

Here's the first couple of paragraphs, press release is really long, don't want to tie up CCs space.

 

Royal Caribbean Reports Record First Quarter Earnings And Increases Full Year Guidance

 

MIAMI, April 26, 2018 /PRNewswire/ -- Royal Caribbean Cruises Ltd. (NYSE: RCL) today reported record first quarter results and increased its outlook for the full year. The company reported first quarter US GAAP earnings of $1.02 per share and Adjusted earnings of $1.09 per share beating guidance due to better revenue. Full year Adjusted earnings guidance is increased by $0.15 to a range of $8.70 to $8.90 per share.

KEY HIGHLIGHTS

 

 

 

Results for the First Quarter 2018:

• US GAAP Net Income was $218.7 million or $1.02 per share and Adjusted Net Income was $232.8 million or $1.09 per share versus US GAAP and Adjusted Net Income of $214.7 million or $0.99 per share in 2017.
  
• Gross Yields were up 3.1% in Constant-Currency (up 5.1% As-Reported). Net Yields were up 4.9% in Constant-Currency (up 7.0% As-Reported).
  
• Gross Cruise Costs per APCD increased 5.0% in Constant-Currency (up 6.1% As-Reported). Net Cruise Costs ("NCC") excluding Fuel per APCD were up 11.2% in Constant-Currency (up 12.5% As-Reported).
  

Full Year 2018:

• Overall, the company's booked position remains at a record level, better than last year in both rate and volume.
  
• Adjusted earnings are expected to be in the range of $8.70 to $8.90 per share, up $0.15 from initial guidance.
  
• Net Yields are expected to increase 2.0% to 3.75% in Constant-Currency (up approximately 4.0% As-Reported).
  
• NCC excluding Fuel per APCD are expected to be up approximately 2.5% in Constant-Currency (up 3.0% to 3.5% As-Reported).
  

"This year is proving to be another strong year with all our brands firing on all cylinders," said Richard D. Fain, chairman and CEO. "The market continues to support our growth as our people keep focused on delivering our targets and goals. The strength of this market plus our new ships in 2018 (Symphony of the Seas, Azamara Pursuit, Mein Schiff 1 and Celebrity Edge),position us nicely for 2019 as well

The stock is getting beat up today. I can't figure out why. Seems like a good report?

The stock is getting beat up today. I can't figure out why. Seems like a good report?

Because great isn’t good enough! ;)

The stock is getting beat up today. I can't figure out why. Seems like a good report?

Because revenue did not meet projections:

Revenue of $2.027 billion fell short of estimates of $2.045 billion. More specifically, passenger ticket revenues of $1.425 billion missed expectations of $1.445 billion.

Stock prices are determined by what the companys are going to do in the future not what they've done lately. If people have high expectations for the future the stock prices rise. When the actual results come out and they are lower than expectations, the price drops, like today. Some other things that might come into play is the situation in Asia, especially China. I think that area is RCL's highest profit area as well as the area with the highest growth. The other thing is fuel prices. Last I saw oil was pushing $70 per barrel. The cruise line has a clause stating they have the right to add a fuel surcharge if oil passes $65 per barrel. I remember many years ago, oil was about $100 per barrel and there was a surcharge of $10 per day, per person with a $140 max for any length cruise. It only lasted a little while though. All the extra capacity coming out and the direction of the economy, either way will have a lot to say on what happens to the stock price.

Nobody really knows.

Market had priced Royal as growth company. Results imply growth has stalled. Couple of numbers from the 10Q:

Net income only rose 2%

Total revenue year over year only rose $19mm or 1%

Cruise costs excluding fuel increased 11.2% including $20mm increase in marketing.

Results helped by $17mm year over year drop in fuel cost, but trend is now up and Royal is only 50% hedged.

Total passengers carried actually shrank from 1,425m to 1,405m.