Royal Caribbean (RCL) Q3 earnings report preview: what to look for
Cruise vacation company Royal Caribbean (NYSE:RCL) will be reporting earnings this Tuesday before market hours. Here’s what to look for.
Royal Caribbean met analysts’ revenue expectations last quarter, reporting revenues of $4.83 billion, up 6.5% year on year. It was a satisfactory quarter for the company, with full-year EPS guidance topping analysts’ expectations. It reported 14.96 million passenger cruise days, up 4.8% year on year.
Is Royal Caribbean a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Royal Caribbean’s revenue to grow 9.1% year on year, improving from the 5.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings.
Looking at Royal Caribbean’s peers in the consumer discretionary - travel and vacation providers segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Wyndham delivered year-on-year revenue growth of 7.3%, meeting analysts’ expectations, and Carnival reported revenues up 3.5%, topping estimates by 1.1%. Wyndham traded down 4.2% following the results while Carnival was up 10.8%.
Read our full analysis of Wyndham’s results here and Carnival’s results here.
Investors in the consumer discretionary - travel and vacation providers segment have had steady hands going into earnings, with share prices flat over the last month. Royal Caribbean is up 14.3% during the same time and is heading into earnings with an average analyst price target of $350.11 (compared to the current share price of $276.97).
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