Copyright reuters
SummaryCompaniesRaises annual profit forecast but falls short of estimatesReports in-line quarterly revenue, while profit beatsSays weather, extension of closure of its Labadee, Haiti destination hit current quarter Oct 28 (Reuters) - Royal Caribbean (RCL.N), opens new tab forecast fourth-quarter profit below expectations on Tuesday, as the cruise operator faces higher costs, sending its shares down about 8% in early trading. The company raised its forecast for annual profit but that too fell short of expectations, tempering a strong year that saw shares rise about 38%. Increased fuel costs amid escalating global tensions and expenses related to drydocking, ship deliveries and maintenance have hit the company. Advertisement · Scroll to continue Royal Caribbean forecast fourth-quarter adjusted profit per share to be in the range of $2.74 to $2.79, below analysts' average estimate of $2.89, according to data compiled by LSEG. Cruise operators may also be seeing pressure due to the government shutdown affecting port activity, further casting a gloom on investor sentiment, said Robert Pavlik, senior portfolio manager at Connecticut-based Dakota Wealth. Royal Caribbean said the impact of weather events and the unplanned extension of the temporary closure of its Labadee, Haiti destination will weigh on current-quarter margin. The company's third-quarter margin rose 3.8%, compared with a 13.4% jump a year ago, and an 11% increase in the prior quarter. Advertisement · Scroll to continue Gross cruise costs per available passenger cruise days increased 2.7%. Royal Caribbean expects fiscal 2025 adjusted profit per share of $15.58 to $15.63, below analysts' average estimate of $15.68, according to data compiled by LSEG. It had previously forecast a range of $15.41 to $15.55 per share. Still, analysts remained bullish on overall cruise demand as customers, especially higher income, pick experiences over other discretionary spending. "Cruises continue to outperform most other travel and leisure categories," Michael Gunther, analyst with Consumer Edge, said, adding that growth was "particularly robust" within groups whose income is between $100,000 and $150,000 annually. For the third quarter ended September 30, Royal Caribbean posted revenue of $5.14 billion, in line with analysts' average estimate of $5.16 billion, and an adjusted profit of $5.75 per share that exceeded expectations of $5.67. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV2125200913 About ConnatixV2125200913 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE Reporting by Neil J Kanatt in Bengaluru; Editing by Shinjini Ganguli Purchase Licensing Rights
