Royal Caribbean Can't Survive Without Federal Reserve: Jim Cramer
Let's go over Royal Caribbean.
Royal Caribbean posted a loss of $1.6 billion, or $7.83 a share, in the quarter, swinging from a profit of $472.8 million, or $2.25 a share, in the year-earlier quarter.
The company adjusted loss was $1.3 billion, or $6.13 a share, for the latest quarter, reversing an adjusted profit of $532.7 million, or $2.54, a year earlier.
The FactSet analyst consensus called for an adjusted loss of $4.82 a share in the latest quarter.
"Most important, Royal Caribbean has incredibly healthy bookings for 2021, pretty much the typical amount it would have at this time except for, even better, 60% of the bookings are from new people. The company, I think rather astoundingly, has $1.8 billion in customer deposits on hand although some most definitely will cancel if the Centers for Disease Control (CDC) keeps the company's ships from sailing, as has been the case with seven suspensions so far," Jim Cramer wrote in his Real Money column this morning.
"Cruise line CEOs as a cohort are an unusually good and gregarious sort, truly among the best there is, and Richard Fain, the CEO of Royal Caribbean, is no different. He made a crucial point about how this company is in business: "With our strong brands, great reputation and a solid balance sheet we've been able to access the capital markets and to negotiate with governments, vendors, shipyard operators and others to improve our financial terms," he continued.
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