Royal Caribbean (RCL) Should Thank Carnival (CCL) for Q1 Results
Revenue of $1.91 billion and EPS of 35 cents compared with consensus views calling for revs of $1.87 billion and EPS of 21 cents. Net profit improved over 62 percent on the quarter.
Some speculate that results might be due in part to continued flubs at rival Carnival (NYSE: CCL)(NYSE: CUK). Last year, the sector took a ding following the incident with the Costa Concordia off the coast of Italy.
More recently, events surrounding Carnival's Triumph and Splendor ships have caused a stir in the industry, but travelers kept up the cruising amid the circumstances, though not necessarily with Carnival. The Triumph famously delivered the "Cruise from Hell," trapping passengers for several days with no power and limited resources. It then broke away from a dock in Alabama recently, causing more strife for the company.
With its most recent report, Carnival posted in-line profit with lowered 2013 expectations, pressuring the stock over the last month. Shares are seeing a bounce today following Royal Caribbean news.
Royal Caribbean is up over 5 percent, slightly paring earlier gains.