Royal Caribbean Stock Sinks As Q2 Earnings Trails Consensus, Forecasts Q3 Loss

Royal Caribbean Group RCL reported a second-quarter FY21 revenue decline of 71% year-on-year, to $50.91 million, missing the analyst consensus of $147.37 million.
Passenger ticket revenues plummeted 78.7% Y/Y to $22.8 million.
Cruise operating expense fell 37.6% Y/Y to $424.8 million.
The operating loss contracted 20.2% Y/Y to $(1.02) billion.
The average monthly cash burn rate for Q2 was about $330 million, slightly higher than Q1 as it returned additional ships into operation.
Royal Caribbean held $4.25 billion in cash and equivalents as of June 30, 2021.
Customer Deposits increased $530 million from last quarter to $2.4 billion.
Adjusted loss per share of $(5.06) missed the analyst consensus for a loss of $(4.40).
"After 16 months of being at a virtual standstill and another painful financial result this quarter, the flywheel is clearly picking up momentum," said CEO Richard D. Fain.
In total, 36 ships from Royal Caribbean's five brands, or over 60% of its fleet, have either resumed sailing or intend to resume sailing by August-end.
Outlook: Royal Caribbean expects to incur a net loss on U.S. GAAP and adjusted basis for Q3 and FY21.
Price action: RCL shares are trading lower by 4.63% at $71.01 on the last check Wednesday.
Photo by postcardtrip from Pixabay

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