Royal Caribbean Cruises (RCL)
By Elyse Andrews, Editor of Cabot Wealth Advisory
From Cabot Wealth Advisory 1/29/11 Sign up for free Cabot Wealth Advisory e-newsletter
Royal Caribbean (RCL) was recently featured in Cabot Top Ten Weekly. Editor Mike Cintolo wrote:
“Royal Caribbean first popped up in Cabot Top Ten Weekly last October, then in November. And now this cruise company, whose brands include Royal Caribbean International, Celebrity Cruises, Pullmantur Cruises, Azamara Club Cruises and CDF Croisieres de France, is back again as investors continue to like the story of a recovering global economy and an aging population that's favorably disposed toward onboard vacations. A little over half (54%) of Royal Caribbean's 2009 revenues were from U.S. ticket sales, and the company gets nearly 30% of revenue from onboard sales and services. An aggressive program of cost controls yielded a strong 53% jump in earnings on just a 17% gain in revenues in Q3, and Q4 results, which are scheduled for 10:00 am Eastern on this Thursday (January 27) are widely expected to beat analysts' estimates. Some of that expectation is already priced in, but a good result should still boost the stock.”
“RCL has gone through some significant corrections during its rise from 5 in early 2009 to near 50 in recent trading, but the tendency is clearly up. After popping up to its recent high on January 15, RCL has corrected to its rising 25-day moving average just above 47. It's likely that the stock will trade sideways until earnings are out. A small buy, with a tight stop at the 50-day moving average (now at 44.5) should do well.”
As Mike mentioned, Royal Caribbean reported earnings last night. The company beat Wall Street forecasts for the most recent quarter with Q4 profits of $42.7 million, or 20 cents per share, handily beating views of $26.9 million, or 13 cents per share, and well above last year’s $3.4 million, or 2 cents per share. Revenue rose 10% over last year to $1.6 billion. But Royal Caribbean’s outlook disappointed investors, sending the stock lower. So watch this one closely before jumping in.
Editor of Cabot Wealth Advisory
Elyse Andrews edits Cabot Wealth Advisory, a free email newsletter that offers independent, no-nonsense investment advice on how to build long-lasting wealth written by Cabot's analysts and editors. Every Saturday, Elyse writes the Weekend Digest, which includes her column and a summary of Cabot Wealth Advisories that readers may have missed during the week. Elyse is also a regular contributor to The Iconoclast Investor, a blog for Cabot editors and readers to share their views and interact with each other.
|Royal Caribbean Cruises (RCL)
1050 Caribbean Way
Miami, Florida 33132-2096
|Index Membership: N/A |
Industry: General Entertainment
Full Time Employees: 59,500