Royal Caribbean shares spiked 13.7% less than two hours into the day's session to trade at $39.98 amid heavy volume. Nearly 9 million shares were in play, compared with their average daily trading volume of 2.4 million share.
Royal Caribbean said 2010 earnings will grow to a range of $2.43 to $2.47 per share, up from its
"Profitability momentum moving into 2011 is also quite strong with our newest vessels performing exceptionally well and our management team controlling costs very effectively," said CEO Richard D. Fain. "The economy is still tough, but even facing such headwinds our outlook is remarkably encouraging."Analysts from Barclays Capital issued an upgrade on Royal Caribbean shares to overweight, from equal weight, and raised their price target on the stock to $46, from $36. Barclays upgraded rival Carnival's (CCL) as well, to overweight from equal weight, and raised their price target to $52 from $43. In the recent quarter Royal Caribbean booked earnings of $356.8 million, or $1.64 per share, a 35.4% increase over year-earlier income of $230.4 million, or $1.07 per share. Quarterly revenue jumped 16.7% to $2.1 billion, attributed to capacity increases and yield improvements. Net yields increased 5.2% in the quarter. Royal Caribbean's earnings results topped analysts' consensus call for EPS of $1.57. Sales were in line with expectations. Passenger bookings are also up, thanks in part to lower ticket prices enacted last year in an effort by Fain to draw potential customers who were willing to travel but at lower rates. Fain said demand is now "steady and solid."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV