Royal Caribbean posts $20 million Q4 loss
MIAMI ? Royal Caribbean Cruises Ltd. swung to a $20 million loss in the fourth quarter but the company?s shares jumped yesterday on news that more passengers are making plans to travel this year.
The No. 2 cruise operator said that booking levels and ticket prices have been strengthening lately, with the company setting several booking records for its two lines in the ?wave season? of heavy travel that lasts from January to March.
Royal Caribbean shares rose $2.11, more than 5 percent, to $41.00 in trading yesterday on the New York Stock Exchange.
In the three months ended December 31, the company reported a loss of 10 cents a share, compared to a profit of $38.3 million, or 20 cents a share, a year ago. The results missed Wall Street analysts? average forecast for a loss of 7 cents a share, according to Thomson First Call.
Revenues totalled $878 million, up 12 percent from $781 million for the same quarter in 2002. The boost came as Royal Caribbean introduced two ships last year. But higher fuel prices and increased costs for ship repair and marketing hurt performance, the Miami-based company said
Net revenue yields, a key performance gauge measuring revenue from cabin berths after cost of air transportation and travel agent commissions, were 0.4 percent lower compared to a year ago, the company reported. For 2003, earnings were $280.7 million, or $1.42 a share, on revenue of $3.78 billion, compared to earnings of $351.3 million, or $1.79 per share, on revenue of $3.43 billion in 2002. Analysts expected $1.46 a share, according to Thomson First Call.
This year, the company is forecasting earnings will be in the range of $2.10 to $2.30 a share. Analysts expect $1.99 per share, according to Thomson First Call.
?We are pleased but not surprised by the strong booking activity we have seen over the last few months and are well positioned with our two strong brands, young innovative fleet, and superior revenue management systems to take advantage of this improving environment,? said Richard D. Fain, chairman and chief executive.
