Royal Caribbean earnings show cruise lines must absorb fuel costs, UBS analyst says

EarningsAnalyst
โดย Yahoo Finance·Read original
Summary · why it matters

Royal Caribbean's latest earnings report highlights that cruise operators cannot pass higher fuel costs directly to consumers without hurting demand, according to UBS leisure analyst Robin Farley. Royal Caribbean trimmed its full-year yield forecast, while Carnival Corporation has guided more conservatively and is seen as well positioned due to strong Caribbean demand and a new private island. Norwegian Cruise Line, set to report on July 30, faces company-specific execution issues with its yield growth guidance already at negative 3 to 5 percent, contrasting with yield growth at Royal Caribbean and Carnival. Farley rates Norwegian as neutral and Carnival as a buy, noting Carnival's trailing twelve-month performance has slightly outpaced Royal Caribbean's.

Impact on stocks 3

Consumer Discretionary± Mixed · 3 stocks
Royal Caribbean Cruises Ltd
RCL
▼ NegativePricingrelevance

Royal Caribbean cannot pass higher fuel costs to consumers without hurting demand, and trimmed its full-year yield forecast.

Carnival Corporation
CCL
▲ PositiveDemandrelevance

Carnival is seen as well positioned due to strong Caribbean demand and a new private island, with UBS rating it a buy.

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