Royal Caribbean Cruises Ltd (RCCL), the world’s second largest cruise shipping group, said it expects its 2017 Earnings per share (EPS) to climb to the range of $6.90 to $7.10 from $6.08 in 2016.
Net yields are expected to increase 4.0% to 6.0% on a constant-currency basis and 3.3% to 5.3% asreported, the company said. Net cruise costs, excluding fuel , are expected to be flat on a Constant-Currency basis and flat to minus 1.0% as reported. “Adjusted EPS for 2017 is expected to be in the range of $6.90 - $7.10 per share,” RCCL said in a statement.
Foreign exchange and fuel prices are creating headwinds. The above guidance is based on current rates which will cost the company $0.18 per share versus last year's figures. Since the last update, the impact has worsened by $0.10 per share
The company's booked position for 2017 is better than last year's record high, and at higher rates. Strength from North American consumers is driving exceptionally positive trends for North American and European products.
These trends, along with a positive outlook for Australia and a solid booked position in China for the first half of the year, are positioning the company for robust growth in 2017.
"Our global portfolio of products is demonstrating strength across virtually all key markets, positioning us to deliver strong yield growth in 2017," said Jason T. Liberty, chief financial officer. "Strong topline growth combined with continued focus on cost management will generate another year of record setting results. Even with significant pressure from FX (foreign exchange) and fuel, we will deliver another stellar year."
