Royal Caribbean crushes estimates

Royal Caribbean Cruises reported a rise in first-quarter profit that topped even the most optimistic analyst estimate.

The New York-listed cruiseship owner reported $99.1m in net income during the period, more than doubling the $45.2m earned in the first quarter of last year.

The result translated into adjusted earnings per share (EPS) of $0.57, higher than the estimates of all 17 analysts, who placed an average bet calling for $0.31 in EPS, according to data provided by Yahoo News.

Royal Caribbean also raised its EPS forecast for 2016 by $0.25, which means it now expects to earn between $6.15 and $6.35 per share this year.

The earnings report is certain to add to bullish sentiment in the cruise sector, where slow fleet growth and emerging markets have allowed the lines to bolster pricing and eschew last-minute promotions.

"What an exciting quarter in an exciting year," said chief executive Richard Fain.

"Our brands continue to excel and produce gratifying results. This year's performance further solidifies our base for the Double-Double," he said, referring to a programme to double EPS and secure a double-digit return on invested capital.

Net yields surged 7% on a constant-currency basis and 3.4% on an as-reported basis thanks to strong close-in demand in the Caribbean and better onboard revenue.

Looking ahead, Royal Caribbean said its booking position is solid for 2016.

"The first quarter has given our year momentum, which is more than offsetting some headwinds from the Mediterranean," said Jason Liberty, chief financial officer. "This performance is positioning us for the highest earnings in company history."

The company said it has purchased $450m of its own shares out of a $500m buyback programme.

Earnings snapshot