Royal Caribbean Rises as Adjusted Loss Beats Estimate

Royal Caribbean's fourth-quarter revenue slumped as the COVID pandemic slammed the cruise operator and the entire tourism industry.
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Royal Caribbean  (RCL) - Get Report shares rose after the cruise-line operator posted a wider-than-expected fourth-quarter loss and a narrower-than-estimated adjusted loss.

The Miami company registered a loss of $1.37 billion, or $6.09 a share, swinging from profit of $273.1 million, or $1.30 a share, in the year-earlier quarter. The latest adjusted loss was $5.02 a share.

A survey of analysts by FactSet was looking for a GAAP loss of $5.23 a share, or an adjusted $5.20.

Revenue dropped 99% to $34.1 million from $2.52 billion a year earlier. The latest figure trailed the FactSet analyst consensus of $35.6 million. 

Nearly all Royal Caribbean cruises have been shuttered since last March, when the COVID pandemic broke out.

"The COVID-19 pandemic is having a painful and profound impact on our world and our business; unquestionably, this crisis is the most difficult in the company's history,” Chief Executive Richard Fain said in a statement.

“But we have been impressed and grateful for the resourcefulness and agility of our team in responding to these unprecedented challenges. More importantly, we remain confident about the ability of our company to recover and return to the positive trajectory we were on previously."

Further, "We are encouraged to see the sharp decline in cases and the growing availability of vaccines. We can't wait to get back to the business of showing people the world and making great memories."

Royal recently traded at $79.11, up 0.3%. It dropped 26% over the past year through Friday. But it has rebounded 28% over the past six months.