Royal Caribbean Posts 4Q Profit

 

The world's second-largest cruise operator posted net income in the period of $206.8 million or 94 cents a share. That compared with $109.7 million, or 49 cents, the year before, the company announced.

 

Revenue in the quarter rose 4.6 percent to $1.9 billion from a year ago. Still, while Royal Caribbean's earnings per share beat analysts' estimates of 92 cents, it missed the revenue forecast of $1.95 billion, according to Zacks Equity Research.

 

"Our core brands are firing on all cylinders, our new ships are performing exceptionally well and our costs are well controlled. This is driving 40 percent-plus earnings growth in two consecutive years," Richard D. Fain, chairman and CEO, said in a statement.

 

The cruise line said in a press release that currency exposure, expected higher fuel costs and recent increases in interest rates are expected to have a total negative impact on earnings of 20 cents a share for the full year. Further, weakness in Latin American economies, along with the restructuring of the company’s Pullmantur cruise lines based in Spain, will have an additional impact on earnings of 20 cents a share.

 

Turning to 2016, Royal Caribbean said its booked load factors, or the percentage of cabins booked on a cruise, is equal to last year but at higher prices.

 

However, Royal Caribbean said the Zika virus, spreading through Latin America and the Caribbean, is not having a material impact on business so far.