Royal Caribbean Cuts Revenue Outlook, Shares Drop 5% Despite Profit Raise
RCL sits 25% above its 52-week low of $232.1.
Summary
Royal Caribbean lowered its full-year revenue growth forecast to 9% from 10%, citing a modest near-term booking impact from geopolitical uncertainty. The revision overshadowed an increase in adjusted EPS guidance to $17.73-$17.87, up from $17.10-$17.50, driven by a strong Q2. Shares fell about 5% in premarket trading, reflecting concern over softening demand. This follows the earlier profit guidance raise reported this morning, but the revenue cut is new and signals that geopolitical headwinds are starting to bite. The cruise operator also faces elevated fuel costs from U.S.-Iran tensions, adding margin pressure.
At the time of this announcement, RCL was trading at $290.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $81.8B. The 52-week trading range was $232.10 to $366.50. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.