Shares in Royal Caribbean Cruises rocketed Friday after it delivered better-than-expected earnings that is predicted to ease investor concerns about the cruise market.
The giant cruise ship owner's shares were up more than 10% over yesterday's close on the New York Stock Exchange before losing some ground and ending today at $74.47, a 9.4% gain in the trading session.
$1.38bn market cap gain
The jump represented a one-day market share gain of nearly $1.38bn, more than the entire market value most US-listed shipping companies.
The stock price improvement came after the world's second largest cruise operator reported net income of $693m, up from $229m in the same period of last year, as TradeWinds reported earlier. The $3.20 in adjusted earnings per share was better than the average analyst estimate.
"[Royal Caribbean's] results should help resolve scepticism over [its] guidance and outlook," said UBS analyst Robin Farley.
She said that concern is should be eased by the earnings beat, the company's reiterated profit guidance and news of higher volume and pricing for next year.
Bookings surprise
The analyst highlighted that the company's forward bookings are ahead of this time last year in all major markets, and they even did surprisingly well in Europe.
Farley said the earnings beat should help offset a setback in the fourth quarter caused by a delay in bookings of the 1,600-berth Empress of the Seas (built 1990) after it was reintroduced to the Royal Caribbean International brand from Pullmantur.
