Royal Caribbean reports Q4 (Dec) results, beats on revs; guides Q1 EPS below consensus; guides FY18 EPS in-line
- Reports Q4 (Dec) earnings of $7.53 per share, may not be comparable to the Capital IQ Consensus of $1.20; revenues rose 5.0% year/year to $2 bln vs the $1.97 bln Capital IQ Consensus
- Net Yields were up 3.9% on a Constant-Currency basis, beating the mid-point of the guidance by 165 basis points
- Strong close-in demand for our core products combined with better than expected onboard spend drove the outperformance
- Gross Cruise Costs per APCD increased 5.6% on a Constant-Currency basis. Net Cruise Costs ("NCC") excluding Fuel per APCD were up 8.7% on a Constant-Currency basis.
- Co issues downside guidance for Q1, sees EPS of ~$0.95, excluding non-recurring items, vs. $1.02 Capital IQ Consensus Estimate.
- Co issues in-line guidance for FY18, sees EPS of $8.55-8.75, excluding non-recurring items, vs. $8.65 Capital IQ Consensus Estimate
- For FY18, Net Yields are expected to increase 1.5% to 3.5% on a Constant-Currency basis (up 2.75% to 4.75% As-Reported); NCC excluding Fuel per APCD are expected to be up 1.5% to 2.0% on a Constant-Currency basis (up 2.0% to 2.5% As-Reported)
- For Q1, Net Yields are expected to increase 3.0% to 3.5% on a Constant-Currency basis and ~5.5% As-Reported; NCC excluding Fuel per APCD for the quarter are expected to be up approximately 10.0% on a Constant-Currency basis (up ~11.0% As-Reported)