Royal Caribbean's Q3 EPS Beats, But Goldman Sachs Cautions On Rising Q4 Costs And EPS Impact

Royal Caribbean Cruises Ltd. (NYSE:RCL) shares are trading higher on Tuesday. The company reported mixed third-quarter results today.

Revenue grew 17.5% year-over-year to $4.89 billion, missing the consensus of $4.90 billion, while adjusted EPS of $5.20 was above the consensus of $5.03.

The company sees fourth-quarter net yields increase 5.1% to 5.6% in constant currency. RCL sees adjusted EPS of $1.40, $1.45 against the estimate of $2.28.

Goldman Sachs analyst Lizzie Dove writes that looking ahead, the primary disappointment is expected to be in the fourth-quarter guidance, with reported net yield growth projected at 5.3% to 5.8%, slightly below our expectation of 5.9%.

This forecast already considers the impact of ...