Royal Caribbean Cruises (NYSE: RCL) reported Q4 EPS of $1.42, in-line with the analyst estimate of $1.42. Revenue for the quarter came in at $2.52 billion versus the consensus estimate of $2.54 billion.

"We are pairing ambitious business and environmental goals because we all understand that businesses must do our part to meet the needs of all our stakeholders," said Richard D. Fain, chairman and CEO. "Over the last years, our people have worked hard to deliver strong performance on both profitability metrics and important societal goals. This 20>25 by 2025 program should help take those efforts to the next level."

GUIDANCE:

Royal Caribbean Cruises sees Q1 2020 EPS of $0.80-$0.85, versus the consensus of $1.12.

Royal Caribbean Cruises sees FY2020 EPS of $10.40-$10.70, versus the consensus of $10.47.

"Our yield outlook for 2020 is very encouraging with higher pricing on top of an exceptional 2019 performance," said Jason T. Liberty, executive vice president and CFO. "It's clear that the Coronavirus will impact revenue in China in the short term, but we are a long-term business and our plans to continue growing this profitable market remain unchanged. We are also very excited about the introduction of our 20>25 by 2025 goals. Our formula for success is simple and our path towards our EPS goal is driven by moderately growing our yields, effectively managing our costs and moderately growing our business. Meanwhile, our emissions target, which is one of our many sustainability initiatives, will further focus our world-class design, engineering and operations teams to meaningfully improve our environmental impact."

FIRST QUARTER 2020 GUIDANCE

Net Yields are expected to be down approximately (0.5%) in Constant-Currency and down (0.5%) to (1.0%) As-Reported. Demand for the core products and onboard experiences is very strong. Nevertheless, the unprecedented bushfires in Australia, and recent activity in Hong Kong and the Middle East are each having a negative impact in the first quarter. Moreover, the first quarter is also being negatively impacted by other structural elements such as the discontinuation of Cuba sailings which equals a revenue headwind of approximately 120 basis points, and a tough year-over-year comparable as we are lapping the inaugural seasons of two new ships during the first quarter of 2019.

NCC excluding Fuel per APCD for the quarter are expected to increase approximately 3.0% in both Constant-Currency and As-Reported basis.

Based on current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects first quarter Adjusted EPS to be in the range of $0.80 to $0.85 per share.

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