Barclays Maintains an 'Overweight' on Royal Caribbean (RCL); 3Q11 Preview

Barclays maintains an 'Overweight' on Royal Caribbean Cruises (NYSE: RCL) price target of $38.00.

Barclays analyst says, "RCL will report 3Q11 earnings on 10/27 with a call at 10:00am ET. We forecast 3Q11 EPS of $1.86, vs. $1.61 last year (adj. for interest expense), guidance of $1.85 to $1.90, and consensus of $1.86. We forecast 3Q net yield growth of 5.0% (or 1.5% ex-FX) and net cruise cost growth of 6.4% (or 4.5% ex-fuel), both in line with Royal's guidance."

"Overall, we believe demand remained solid in the third quarter and expect RCL to report net yield in line with guidance and consensus. We believe EPS could miss due to unfavorable FX given the sharp USD appreciation in September (we calculate a $0.02 impact to EPS), as well as a decline in WTI that could result in a $0.07/share mark to market loss on the company's fuel call options."

For more ratings news on Royal Caribbean Cruises click here and for the rating history of Royal Caribbean Cruises click here.

Shares of Royal Caribbean Cruises closed at $29.40 yesterday.

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