Royal Caribbean Cruises CEO: Disappointed By The Market Reaction To The Results

Royal Caribbean Cruises Ltd RCL reported better than expected quarterly numbers on Monday, but the stock plunged heavily on back of the company reducing its full year 2015 adjusted EPS guidance from a range of $4.65-$4.85 to a range of $4.45-$4.65.

Richard Fain, Royal Caribbean Cruises CEO, was on CNBC Monday to weigh in on the company earnings.

Disappointed By Market Reaction

“It’s very good day for us, obviously very disappointed at the market reaction,” Fain said. We did lower our output mainly because of foreign exchange and fuel, which I think most people knew was coming. We lowered our yield guidance by just a quarter of a percent. So, I think from our perspective we are on track, we are heading towards our [double double] and […] is just a part of a normal progression.”

Dollar Not Causing Route Disruption

Fain was asked that will he be also reducing capacity on the routes where dollar has appreciated a lot, just like some airlines are doing. He replied, “We are not, we really see the demand is still there, the currency hurts us but there are ways we can offset that overtime and so no we don’t see the strength of the dollar as causing us this shift or our itineraries material.”

China

On the Chinese market, Fain said, “We are sending two of our sister ships to China because that market continues to explode and we want to maintain our position as the [preemptive] cruise line.”