Royal Caribbean stock falls after wider-than-expected loss, another revenue miss

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Shares of Royal Caribbean Group RCL, -4.76% fell 1.5% in premarket trading Friday, after the cruise operator reported a wider-than-expected fourth-quarter loss and revenue that missed expectations again, as the omicron variant of the coronavirus that causes COVID-19 led to cruise cancellations and service disruptions. The net loss narrowed to $1.36 billion, or $5.33 a share, from $1.37 billion, or $6.09 a share, in the year-ago period. Excluding nonrecurring items, the adjusted loss per share narrowed to $4.78 from $5.02, but was wider than the FactSet loss consensus of $3.92. Revenue rose to $982.2 million from $34.1 million, but was below the FactSet consensus of $1.04 billion. That marks the sixth-straight quarter the company has missed revenue expectations. The company had started gradually resuming cruise operations in December 2020. Given the impact of the omicron variant, the company expects to operate about 95% of its planned capacity in the first quarter, and expects to be cash flow positive in late spring. “Following a record U.S. black Friday and cyber weekend, the spread of the Omicron variant resulted in a softening in booking volumes and an increase in near-term cancellations,” said Chief Financial Officer Naftali Holtz. “Similar to our experience following Delta, we expect bookings to materially increase as we get further beyond the peak of cases.” The stock has dropped 10.6% over the past three months through Thursday, while the S&P 500 SPX, +0.52% has lost 4.3%.

This article was originally published by Marketwatch.com. Read the original article here.

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