Royal Caribbean Group (NYSE: RCL) reported its most recent quarterly results before the opening bell on Monday. Like the rest of the cruise stocks, Royal Caribbean has been beaten up and nearly left for dead. However, there may be a light at the end of the tunnel as more people are being vaccinated for COVID-19.
The firm said that it had a net loss of $5.02 per share on $34.14 million in revenue, which compared with consensus estimates that called for a $5.20 per share net loss and revenue of $35.61 million. The same period of last year reportedly had EPS of $1.42 on $2.52 billion in revenue.
Management noted that the COVID-19 pandemic has been the most difficult in the company’s history. However, the firm remains confident about the ability to recover and return to a positive trajectory. Management also noted that it is encouraged to see the sharp decline in cases and the growing availability of vaccines.
As it stands now, the firm estimates its cash burn to be, on average, in the range of approximately $250 million to $290 million per month during a prolonged suspension of operations. This range includes all interest expenses, ongoing ship operating expenses, administrative expenses, hedging costs and expected necessary capital expenditures.
At the end of the quarter, Royal Caribbean had liquidity of approximately $4.4 billion, including $3.7 billion in cash and cash equivalents and a $0.7 billion commitment from a 364-day facility.
Looking ahead, the booking activity for the second half of 2021 is aligned with the company’s anticipated resumption of cruising. Pricing on these bookings is higher than in 2019. Note that the company has $1.8 billion in customer deposits, of which 50% are related to future cruise credits.
Royal Caribbean stock traded up about 9% to $86.10 on Monday, in a 52-week range of $19.25 to $101.00. The consensus price target is $70.08.
24/7 Wall St.The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
