Neil DennisUS cruise operator Royal Caribbean reported forecast-beating third-quarter results in the face of three hurricanes that devastated areas in several of its key routes.
During August and September, Hurricanes Harvey, Irma and Maria hit key ports in the US and the Caribbean.
Analysts expected to see revenues decline to $2.54bn in the July-September period, yet the company report a 0.2% rise to $2.57bn - narrowly beating market forecasts.
Other Q3 highlights
- Net income rises 8.6% to $752.8m, beating forecasts of $712.1m
- Gross Yields were up 5.6% on a Constant-Currency basis
- Gross Yields were up 5.6% on a Constant-Currency basis
Full-year forecasts
- Adjusted earnings per share are expected to be in the range of $7.35 to $7.40 per share (includes 26 cent per share negative impact from hurricanes)
- Net Yields are expected to increase approximately 6%
Royal Caribbean's Splendour of the Seas: Wikimedia CommonsOutlook
The company said: "Most of [the hurricane] impact was from lost revenue, but there were also direct costs associated with the storms and with the company's humanitarian efforts.
"In addition, there were significant timing shifts across a wide range of activities as expenses were shifted between quarters to adjust to the storms.
"Nevertheless, the company still expects to generate earnings for the year within the increased range of guidance provided prior to the storms."
Market reaction
Shares in Royal Caribbean rose 3.1% to $129.23 overnight on Wall Street, and were up 0.18% to $129.46 in pre-market trade on Wednesday.