Royal Caribbean Soars After Boosting Full-Year Profit Forecast
- The cruise operator’s profit is now set to eclipse estimates
- Rivals also surged on bets the worst is over for cruises
A Royal Caribbean cruise ship in Miami, Florida.
Photographer: Jayme Gershen/BloombergThis article is for subscribers only.
Royal Caribbean Cruises Ltd. rose Thursday after raising its full year profit forecast to a level that significantly beat expectations, with investors betting that increased demand for its cruises is signaling the worst may be over for the battered industry.
The cruise operator now expects adjusted earnings per share of $6.00 to $6.20 this year, up from its prior forecast of $4.40 to $4.80. That eclipsed the average analyst estimate of $4.73, sending Royal Caribbean shares up as much as 8.6% at the open on Thursday. Rivals Carnival Corp. and Norwegian Cruise Line Holdings also jumped as much as 6.6% and 6.3% respectively.