Royal Caribbean Cruises Shares Dip On Lowered Earnings Forecast

Shares of

dipped arouns 6 percent in pre-market trading, despite the company reporting better-than-expected earnings for the first quarter. The company's weak earnings forecast for the full year exerted pressure on the shares. The Miami, Florida-based company posted quarterly net income of $45.2 million, or $0.20 per share, compared to $26.5 million, or $0.12 per share, in the year-ago quarter. Its adjusted earnings came in at $0.20 per share. Its revenue slipped to $1.82 billion from $1.89 billion. However, analysts were expecting earnings of $0.14 per share on revenue of $1.86 billion. Net Cruise Costs, excluding fuel, rose 0.9 percent on a constant-currency basis. The average estimate among 20 Estimize users was for earnings of $0.16 per share and revenue of $1.83 billion. "It is gratifying to post another strong quarter with both revenues and expenses exceeding expectations," said Richard D. Fain, chairman and chief executive officer. "Despite ongoing volatility in the currency and fuel markets, our Double-Double program remains solidly on track." Royal Caribbean Cruises lowered its full-year adjusted earnings forecast to $4.45 to $4.65 per share, versus a previous outlook of $4.65 to $4.85 per share. Royal Caribbean Cruises shares dropped 5.97 percent to $74.31 in pre-market trading.