Royal Caribbean Q2 Profit Tops Views, Shares Surge

Shares of

climbed over 5 percent in pre-market trading after the company reported stronger-than-expected earnings for the second quarter and lifted its forecast for the full year. The Miami, Florida-based company posted quarterly net income of $185 million, or $0.84 per share, compared to $137.7 million, or $0.62 per share, in the year-ago quarter. Its adjusted earnings surged to $0.84 per share from $0.66 per share. Its revenue climbed to $2.06 billion from $1.98 billion. However, analysts were expecting earnings of $0.73 per share on revenue of $2.06 billion. The average estimate among 14 Estimize users was for earnings of $0.74 per share and revenue of $2.05 billion. Its net yields climbed 4.2 percent on a constant currency basis during the recent quarter, while net cruise costs, excluding fuel, rose 3.4 percent on a constant-currency basis. "The Double-Double introduced demanding but achievable targets for our organization, and I am proud of our company's focus on delivering this program," said Richard D. Fain, chairman and chief executive officer. "We continue to focus on the strength of our brands to drive these improving results." Royal Caribbean now projects full-year adjusted earnings of $4.65 to $4.75 per share. It also expects Q3 adjusted earnings of $2.70 per share. Royal Caribbean shares gained 5.38 percent to $87.19 in pre-market trading.