Royal Caribbean Cruises, Ltd (RCCL), the world’s second largest cruise shipping group, says it updated full year adjusted earnings per share (EPS )guidance to a range of $6.00 to $6.10.
“This is a $0.20 decrease at the midpoint versus previous guidance due to a $0.27 negative impact from currency and fuel rates, of which approximately $0.14 is related to weakness in the British Pound following the Brexit vote. Lower than expected fuel expense in the second quarter partially offset the full year impact of weaker foreign currencies and rise in fuel prices, the company said in a statement.
As previously announced, the company sold 51% of its stake in Pullmantur and formed a Joint Venture with Springwater Capital. This sale results in the deconsolidation of the Pullmantur Group. Consistent with our other joint ventures, results from this venture will now be accounted for under equity method accounting. An immaterial gain related to the sale has been excluded from the company's earnings guidance.
