Royal Caribbean is scheduled to report second-quarter results before the market opens on Tuesday, with analysts expecting a 9% decline in adjusted earnings per share. The company's own guidance from three months ago called for adjusted earnings per share of $3.83 to $3.93, while analyst estimates are slightly higher at $3.98 per share. Revenue is projected to rise a modest 6%, but the focus will be on the outlook after rival Carnival's recent top-line miss and weak bottom-line guidance hurt its stock. Royal Caribbean trades at a premium to competitors, and this report is seen as an opportunity to justify that valuation given its history of superior revenue growth and net margins.
Royal Caribbean Cruises LtdRoyal Caribbean reports Q2 earnings with focus on guidance; results could justify or challenge its premium valuation.
Carnival CorporationCarnival's recent top-line miss and weak guidance hurt its stock, and Royal Caribbean's report is seen as a test for the sector.