TheChek News Flow

Reports Q4 (Dec) earnings of $0.23 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $0.18; revenues rose 2.7% year/year to $1.85 bln vs the $1.83 bln consensus.

• Co issues downside guidance for Q1, sees EPS of $0.20-0.30, excluding non-recurring items, vs. $0.48 Capital IQ Consensus Estimate.
• Co issues upside guidance for FY14, sees EPS of $3.20-3.40, excluding non-recurring items, vs. $3.13 Capital IQ Consensus Estimate.

Net Yields are expected to increase 2% to 3% on a Constant-Currency basis (Approx. 2% As Reported). NCC excluding fuel are expected to be flat to slightly down on a Constant-Currency basis (Approx. flat As Reported).

Q4 color:

• Net Yields on a Constant-Currency basis increased 3.8% during the quarter.
• Ticket revenue outperformed expectations as strong close-in demand continued for Europe and Asia itineraries.
• Onboard revenue yields increased 8.0% year-over-year on a Constant-Currency basis.
• Constant-Currency NCC excluding fuel increased 1.8%. Bunker pricing net of hedging for the fourth quarter was $686 per metric ton and consumption was 342,200 metric tons. Currency rates for the quarter were in line with guidance.

"We remain committed to improving our shareholder returns, returning to an investment grade credit and maintaining moderate growth," said Fain. "We think that the ships we have on order for our wholly-owned brands will serve us well and we do not anticipate an additional newbuild for delivery in 2017."

Capacity increases for 2014, 2015, 2016 and 2017 are expected to be 1.7%, 6.9%, 6.7% and 4.1%, respectively. These figures do not include potential ship sales or additions. In the fourth quarter of 2014, the Royal Caribbean International brand takes delivery of the first of three Quantum class vessels. This is the first new ship delivery for the brand since 2010.