Royal Caribbean Cruises Ltd. rose to its highest price since March 2011 after the world’s second-largest cruise operator posted quarterly profit that beat analysts’ estimates and raised its forecast for the year.
Royal Caribbean gained 6.2 percent to $42.22 at 12:45 p.m. in New York after earlier reaching $42.45. The Miami-based company had advanced 17 percent this year through yesterday.
The company said its revenue yield outlook, an industry measure of capacity and pricing, has improved for the full year and will likely do so in 2014, according to a statement today. Royal Caribbean also cited lower fuel prices and favorable currency exchange rates for the revised earnings forecast.
“Investors will view RCL’s higher guidance and commentary on 2014 yields very favorably resulting in strong price performance in RCL shares today,” Timothy Conder, an analyst at Wells Fargo Securities, said in a note today. He has an outperform rating on the stock.
Full-year adjusted earnings per share will be $2.30 to $2.35, up from a prior range of $2.20 to $2.30. Analysts projected $2.28, on average.
Third-quarter profit of $1.71 a share, excluding items, beat the $1.64 average estimate of analysts. Revenue increased 3.8 percent to $2.31 billion, exceeding projections of $2.29 billion.