According to Zacks, “Royal Caribbean generates nearly 50% of its revenues from customers outside the U.S. where a majority pay with local currency. Hence, any unfavorable change in currency would hurt its earnings. In fact, in view of the negative impact from currency, the company slashed its full-year 2016 earnings guidance as well. Moreover, higher marketing and promotional spend, along with increased cruise costs, might hurt margins in the near term. Nonetheless, Royal Caribbean is expected to deliver solid results going forward, backed by strong booking trends, technological innovation, capacity growth and various profit-generating initiatives. Also, the company has positive record of earnings surprises in recent quarters. However, despite the growth opportunities, lingering global uncertainties in China and Europe is likely to impact the company’s international profits. Estimates too have been going down ahead of Royal Caribbean’s Q3 earnings release.”
Other research analysts also recently issued reports about the stock. Citigroup Inc. reaffirmed a buy rating and issued a $95.00 target price on shares of Royal Caribbean Cruises in a research note on Wednesday, August 24th. Credit Suisse Group AG reissued a buy rating and set a $100.00 price objective on shares of Royal Caribbean Cruises in a research report on Wednesday, August 3rd. Stifel Nicolaus reduced their price objective on shares of Royal Caribbean Cruises from $94.00 to $93.00 and set a buy rating on the stock in a research report on Wednesday, August 3rd. Nomura reissued a buy rating and set a $83.00 price objective on shares of Royal Caribbean Cruises in a research report on Wednesday, September 14th. Finally, Deutsche Bank AG began coverage on shares of Royal Caribbean Cruises in a research report on Thursday, September 29th. They set a hold rating and a $81.00 price objective on the stock. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and eighteen have issued a buy rating to the company’s stock. The company has an average rating of Buy and an average price target of $93.12.
Royal Caribbean Cruises (NYSE:RCL) traded up 2.740% on Monday, hitting $70.675. 513,916 shares of the company’s stock were exchanged. The stock has a market cap of $15.21 billion, a P/E ratio of 20.170 and a beta of 1.65. Royal Caribbean Cruises has a 52-week low of $64.21 and a 52-week high of $103.40. The firm has a 50 day moving average price of $70.71 and a 200-day moving average price of $73.46.
Royal Caribbean Cruises (NYSE:RCL) last issued its earnings results on Tuesday, August 2nd. The company reported $1.09 EPS for the quarter, topping the consensus estimate of $1.02 by $0.07. Royal Caribbean Cruises had a net margin of 9.05% and a return on equity of 14.76%. The company had revenue of $2.11 billion for the quarter, compared to the consensus estimate of $2.17 billion. During the same period in the previous year, the firm earned $0.84 earnings per share. The firm’s revenue for the quarter was up 2.3% on a year-over-year basis. Analysts predict that Royal Caribbean Cruises will post $6.05 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Thursday, October 13th. Stockholders of record on Thursday, September 29th were given a dividend of $0.48 per share. The ex-dividend date of this dividend was Tuesday, September 27th. This represents a $1.92 annualized dividend and a dividend yield of 2.79%. This is a positive change from Royal Caribbean Cruises’s previous quarterly dividend of $0.38. Royal Caribbean Cruises’s dividend payout ratio is presently 55.01%.
In other news, Director Vagn O. Sorensen bought 1,100 shares of Royal Caribbean Cruises stock in a transaction that occurred on Thursday, August 18th. The stock was bought at an average cost of $70.50 per share, with a total value of $77,550.00. Following the acquisition, the director now owns 18,871 shares of the company’s stock, valued at approximately $1,330,405.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Richard D. Fain bought 29,190 shares of Royal Caribbean Cruises stock in a transaction that occurred on Wednesday, August 3rd. The stock was purchased at an average cost of $68.52 per share, with a total value of $2,000,098.80. Following the completion of the acquisition, the chief executive officer now directly owns 1,068,881 shares in the company, valued at approximately $73,239,726.12. The disclosure for this purchase can be found here. Insiders own 16.80% of the company’s stock.
Large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its stake in Royal Caribbean Cruises by 2.3% in the second quarter. Vanguard Group Inc. now owns 15,394,128 shares of the company’s stock valued at $1,033,716,000 after buying an additional 344,473 shares in the last quarter. Primecap Management Co. CA raised its stake in Royal Caribbean Cruises by 31.6% in the second quarter. Primecap Management Co. CA now owns 7,721,989 shares of the company’s stock valued at $518,532,000 after buying an additional 1,852,117 shares in the last quarter. State Street Corp raised its stake in Royal Caribbean Cruises by 0.8% in the first quarter. State Street Corp now owns 6,687,292 shares of the company’s stock valued at $549,355,000 after buying an additional 50,919 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in Royal Caribbean Cruises by 1.9% in the second quarter. Dimensional Fund Advisors LP now owns 2,324,669 shares of the company’s stock valued at $156,118,000 after buying an additional 44,087 shares in the last quarter. Finally, Bessemer Group Inc. raised its stake in Royal Caribbean Cruises by 33.9% in the second quarter. Bessemer Group Inc. now owns 1,521,508 shares of the company’s stock valued at $102,169,000 after buying an additional 384,918 shares in the last quarter. 75.04% of the stock is owned by institutional investors.
About Royal Caribbean Cruises
Royal Caribbean Cruises Ltd. is a cruise company. The Company owns various brands, such as Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisieres de France and joint venture interest in TUI Cruises. It operates approximately 23 ships with an aggregate capacity of approximately 68,600 berths under its Royal Caribbean International brand, offering cruise itineraries that range from 2 to 24 nights.
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