Royal Caribbean Disembarks Q1 on Weak Guidance

For the second quarter, Royal Caribbean expects to have $0.70 in EPS, compared to the consensus estimate of $1.09 in EPS. It expects EPS to in a range of $4.45 to $4.65 for the full year. Net yields are expected to increase 2.5% to 4.0% on a constant-currency basis. The consensus estimates for 2015 are $4.75 in EPS and $8.55 billion in revenue.

At the end of March, 2015, Royal Caribbean’s liquidity was $0.8 billion, including cash and the undrawn portion of the company’s unsecured credit facilities. The company noted that scheduled debt maturities for the remainder of 2015, 2016, 2017, 2018 and 2019 are $0.7 billion, $2.0 billion, $0.9 billion, $1.9 billion and $0.5 billion, respectively.

At the same time, projected capital expenditures for full year 2015, 2016, 2017, 2018 and 2019 are $1.6 billion, $2.3 billion, $0.4 billion, $2.2 billion and $0.4 billion, respectively. These are based on current ship orders.

In the first quarter, the company carried roughly 1.34 million passengers for a total of 9.21 million passenger days.

Jason T. Liberty, chief financial officer, said:

The business continues to perform well, despite the currency volatility. Our unwavering commitment to cost consciousness has helped us identify further efficiencies that are driving a significant shift in our cost guidance for the full year. This type of operational focus throughout all facets of our business is a core enabler of our continued financial success.

ALSO READ: 8 Analyst Stocks Under $10 With Massive Upside Calls

Richard D. Fain, chairman and chief executive, took a positive outlook on the quarter:

It is gratifying to post another strong quarter with both revenues and expenses exceeding expectations. Despite ongoing volatility in the currency and fuel markets, our Double-Double program remains solidly on track.

Shares of Royal Caribbean closed Friday down 1.6% at $79.03. Following the release of the earnings report, shares were down 6% at $74.23 in premarket trading Monday. The stock has a consensus analyst price target of $83.62 and a 52-week trading range of $50.21 to $85.56.