Royal Caribbean Cruises Ltd (RCCL), the Miami based cruise shipping group, said its 2020 earnings per share (EPS) would be higher than forecast at the publication of the second quarter report save for a negative effect of Hurricane Dorian.
“The company expects full year adjusted EPS to be in the range of $9.50 to $9.55 per share. This range includes the negative impact of approximately $0.15 per share from Hurricane Dorian. Excluding this impact, we are increasing the midpoint of our guidance by $0.08 per share,” the company said in its third quarter interim report. It had forecast EPS in the range of $9.55 to $9.65 in the second quarter report.
The company expects a net yield increase of approximately 8.0% in constant currency and approximately 6.75% as reported. The company's booking strength has completely offset the negative yield impact related to Hurricane Dorian.
Net cruise costs excluding fuel per available passenger capacity day APCD are expected to be up approximately 11.0% in Constant-Currency and up approximately 10.5% as reported. “The increase in this updated guidance is driven by the reduction in capacity and relief efforts from the hurricane together with a further increase in technology and product development investments. These expenses are being offset by expected favorability from activities below the line,” RCCL said.
"2019 is shaping up to be another year of solid yield growth and record earnings despite some unusual headwinds," said Jason T. Liberty, executive vice president and CFO.
"As we enter 2020, we are particularly enthusiastic about the new ship deliveries, the development of new destinations, our fleet modernization and technology initiatives. These investments will help us deliver even greater vacations while generating higher yields and better returns," he said.
