Royal Caribbean Cruises Introduces Its New Three-year Program

(RTTNews) - Royal Caribbean Cruises Ltd. (RCL) updated full year Adjusted earnings guidance to a range of $7.35 to $7.40 per share, which includes a $0.26 negative impact from the recent hurricanes; and introduced its new three-year program designed to further drive performance: 20/20 Vision.

As part of 20/20 Vision, the company said it looks to improve already excellent guest satisfaction and employee engagement, while delivering our environmental commitments. These operational drivers are expected to further strengthen the foundation of the company and help deliver double-digit adjusted earnings per share by fiscal 2020, while further improving on our double-digit Return on Invested Capital.

The company expects full year Adjusted EPS guidance to be in the range of $7.35 to $7.40 per share. Excluding the cost of the hurricanes, Adjusted EPS would have been in the range of $7.60to $7.65 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $7.40 per share for fiscal year 2017. Analysts' estimates typically exclude special items.

Constant-Currency and As-Reported Net Yields are expected to increase approximately 6.0% for the full year and NCC ex. Fuel per APCDs are expected to be up approximately 2.0% on a Constant-Currency and As-Reported basis.

Taking into account current fuel pricing, interest rates, currency exchange rates, the company expects 2017 Adjusted EPS to be in the range of $7.35 to $7.40 per share.

Constant-Currency Net Yields are expected to be up 2.0% to 2.5% in the fourth quarter of 2017. NCC ex. Fuel are expected to be up approximately 8.5% on a Constant-Currency basis. The year-over-year increase is driven by planned sales and marketing investments, timing of third quarter costs and lower than expected APCDs due to the hurricanes.

Based on current fuel pricing, interest rates, currency exchange rates e, the company expects fourth quarter Adjusted EPS to be in the range of $1.15 to $1.20 per share. Analysts project fourth-quarter earnings of $ 1.27. per share

The company said it is experiencing strong early booking trends for 2018. Booked load factors and APDs are higher than same time last year while the booking window has continued to extend. Management is excited by the 2018 introduction of Symphony of the Seas in Europe next spring and Celebrity Edge in Fort Lauderdale in December of 2018. While still early in the booking cycle, the view for 2018 is encouraging and the company expects another year of solid yield and earnings growth.