Royal Caribbean Rises Most in Two Years on Profit, Forecast
Royal Caribbean Cruises Ltd. (RCL), the world’s second-largest cruise operator, rose the most in two years after posting third-quarter profit that beat analysts’ estimates and raising its forecast for the year.
Royal Caribbean, based in Miami, gained 11 percent to $34.53 at 11:07 a.m. in New York and rose as much as 12 percent to mark the biggest intraday advance since October 2010. The stock had added 26 percent this year as of yesterday.
For the quarter, typically the biggest of the year, profit of $1.68 a share beat the $1.46 average of 26 analysts’ estimates compiled by Bloomberg. Net income fell 7.8 percent to $367.8 million from $399 million, or $1.82 a share, a year earlier as revenue shrank 9 percent, the company said today in a statement. Sales met analysts’ projections of about $2.22 billion.
The company also said it’s “encouraged by the trends so far” for 2013, citing higher booked load factors, a measure of capacity use.
For the year, Royal Caribbean forecasts profit of $1.85 to $1.95 a share, an increase from the previous projection of $1.70 to $1.80 a share. Analysts were estimating $1.79.
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