Royal Caribbean (RCL) Tops Q2 EPS by 10c, Offers Guidance

Royal Caribbean (NYSE: RCL) reported Q2 EPS of ($2.08), $0.10 better than the analyst estimate of ($2.18). Revenue for the quarter came in at $2.18 billion versus the consensus estimate of $2.11 billion.

GUIDANCE:

Royal Caribbean sees Q3 2022 EPS of $0.05-$0.25, versus the consensus of $0.91. Royal Caribbean sees Q3 2022 revenue of $2.9-3 billion, versus the consensus of $3.03 billion.

• The company expects to operate 11.6 million APCDs in the third quarter and generate approximately $2.9 billion - $3.0 billion in Total Revenue, based on current currency exchange rates.
• The company does not forecast fuel rates, and fuel cost calculations are based on current at-the-pump prices, net of hedging impacts. Based on current fuel rates, the company expects approximately $319 million of fuel expense in the third quarter 2022, at an average pricing of $794 per metric ton, net of hedging.
• Based on current currency exchange rates and fuel rates, the company expects Adjusted EBITDA of $700 million - $750 million in the third quarter.
• Depreciation and amortization expenses for the third quarter of 2022 are expected to be approximately $360 million.
• Net interest expense for the third quarter of 2022, based on current interest rates, is expected to be in the range of $310 million - $320 million. Approximately 70% of the company's debt is tied to fixed interest rates.
• The Group expects a Net Loss in the second half of 2022 due to increases in fuel rates, interest rates and foreign exchange rates. Based on current currency exchange rates, fuel rates and interest rates, the Group expects Adjusted Earnings Per Share for the third quarter of $0.05 - $0.25.

For earnings history and earnings-related data on Royal Caribbean (RCL) click here.

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