The Royal Caribbean’s third quarter results have beaten Wall Street expectations for income with an increase of 34% compared to the same time last year. This is largely due to strong performances in Europe and China as well as reduced fuel prices.
On a per-share basis, they had a net income of $2.19. Earnings that were adjusted for non-recurring and restructuring costs came to $2.20 per share. Revenues came in at just under the $2.4 billion expected.
The company has forecast fourth-quarter earnings of 35-40 cents per share, which is below analyst expectations. Executives of the company claim they are still forced to offer sales in the Caribbean, as this is where competition is strong.
Royal Caribbean expects significant earnings growth into 2015, despite competition in the Caribbean market being strong, due to booking trends in Europe. Anthem of the Seas is set to launch in spring 2015 followed by Allure of the Seas in the summer. Royal Caribbean is also set to increase its presence in China in 2015 by 68% once the brand new Quantum of the Seas ship starts sailing from Shanghai in the summer
The plan moving forward is to not give last-minute discounts in the Caribbean like the ones that were featured heavily this year. There will be fewer cabins to fill in lower-priced markets so they believe they are in their best position yet.
Images sourced via Flickr Creative Commons. Credits: Woody Hibbard