Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping company, said the outlook for the rest of 2014 remains as foreseen in July, with strong markets in Europe and Asia offsetting weakness in the Caribbean.
"Despite the usual swings, the trajectory for 2014 continues along the path described three months ago," said Jason T. Liberty, chief financial officer. "Our satisfaction with the positive results in Europe and Asia continues unabated, as does our eagerness to lap the highly promotional Caribbean environment."
Bookings since the July earnings release have been solid and the company continues to be booked ahead of last year in both load factor and APD. Double-digit yield improvements on Europe and China sailings continue to offset the continuation of a highly promotional Caribbean environment.
The company expects full year adjusted EPS to be approximately $3.45 per share. Constant-Currency Net Yields are expected to increase approximately 2.5%, consistent with the mid-point of previous guidance. NCC excluding fuel are expected to be flat to slightly down on a Constant-Currency basis, consistent with prior guidance.
In the final quarter, Constant-Currency Net Yields are expected to be up approximately 3.5% in the fourth quarter of 2014 and NCC excluding fuel are expected to be up in the range of 2% to 3%. TUI Cruises' additional capacity continues to be a key contributor to earnings for the fourth quarter. Based on current fuel pricing, interest rates and currency exchange rates and the factors detailed above, the company expects fourth quarter Adjusted EPS to be in the range of $0.35 to $0.40 per share.
