Story updated at 9:55 a.m. to reflect market activity.
Shares of Royal Caribbean gained 2.6% to $66.02 in morning trading.
The analyst firm also raised its EPS estimates for the cruise line through 2016. For full year 2015 Jefferies expects Royal Caribbean to report earnings of $4.56 a share, up from previous estimates of $4.39 a share for the year.
The analyst firm expects earnings of $5.64 a share for full year 2016, up from previous estimates of $5.26 a share for the year.
Royal Caribbean is cutting costs, and its forward cruise pricing remains strong according to Jefferies analysts Ian Rennardson and Mark Irvine-Fortescue.
Separately, TheStreet Ratings team rates ROYAL CARIBBEAN CRUISES LTD as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROYAL CARIBBEAN CRUISES LTD (RCL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 5.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 463.63% and other important driving factors, this stock has surged by 76.42% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- ROYAL CARIBBEAN CRUISES LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ROYAL CARIBBEAN CRUISES LTD increased its bottom line by earning $2.14 versus $0.07 in the prior year. This year, the market expects an improvement in earnings ($3.50 versus $2.14).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 456.3% when compared to the same quarter one year prior, rising from $24.75 million to $137.67 million.
- You can view the full analysis from the report here: RCL Ratings Report
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