Royal Caribbean’s outlook falls short on Hurricane Milton impact
In This Article:
(Bloomberg) — Royal Caribbean Cruises Ltd.’s (RCL) shares dropped after its profit outlook for this quarter fell short of expectations due to the impact of Hurricane Milton.
Most Read from Bloomberg
-
There Will Soon Be No Meatpackers Left in NYC’s Historic Meatpacking District
-
A Courtyard Apartment Building Designed for Southwest Sprawl
The world’s most valuable cruise operator said adjusted earnings per share will be $1.40 to $1.45 in the fourth quarter, in a statement Tuesday. Analysts had factored an average of $1.58. The storm, coupled with costs shifting from the third quarter, lowered its forecast by 24 cents.
The softer-than-expected view sent a chill through cruise stocks. Royal Caribbean fell as much as 5.6% in premarket trading while peers Carnival Corp. (CCL) and Norwegian Cruise Line Holdings Ltd. (NCLH) shed more than 2% each.
Still, demand for cruises shows no signs of abating, with booking rates for 2025 sailings at or exceeding prior years. That should allow for better pricing as well, the company said.
“While we are still very early in the planning process, we anticipate earnings per share in 2025 to start with a $14 handle,” Chief Executive Officer Jason Liberty said in the statement.
The company raised its full-year earnings outlook to be in the range of $11.57 to $11.62 per share, while Wall Street projected $11.51. Previously, the cruise operator saw $11.35 to $11.45 a share.
Royal’s shares have risen more than 50% this year, more than double its rivals, as passengers flocked to its cruises in record numbers.
Most Read from Bloomberg Businessweek
-
Dog Man Movie Is Here to Swoop In and Rescue the Children’s Book Business
-
The Influencer Bros Selling More Baseball Bats Than the Pros
?2024 Bloomberg L.P.