|Bid||43.08 x 1000|
|Ask||43.19 x 800|
|Day's range||42.02 - 45.40|
|52-week range||19.25 - 135.32|
|Beta (5Y monthly)||2.49|
|PE ratio (TTM)||4.82|
|Earnings date||23 Jul 2020 - 27 Jul 2020|
|Forward dividend & yield||3.12 (7.23%)|
|Ex-dividend date||05 Mar 2020|
|1y target est||79.46|
The situation becomes even harder when you factor in that nobody knows when cruising will be allowed again, and questions remain as to how quickly demand will return. Royal Caribbean has canceled all June and July cruises. What is Royal Caribbean doing?
Volatility continues to be the name of the game for cruise line stocks in May, and Thursday's trading is no different. Today, the catalyst for shares surging was a Credit Suisse analyst initiating relatively positive coverage on cruise line stocks. Shares of Norwegian Cruise Line (NYSE: NCLH) jumped as much as 12.3%, Royal Caribbean (NYSE: RCL) was up 10.7% early in trading, and Carnival (NYSE: CCL) rose 6.9%.
As long as the sailing industry is able to get back to booking cruises by late summer, Royal Caribbean (NYSE: RCL) says its business will survive. The confined quarters of a cruise ship, where some widespread COVID-19 outbreaks occurred, may present a larger challenge. Royal Caribbean's earnings were worse than expected, with adjusted losses of $6.90 per share.
The cruise ship industry has been tempest-tost as the COVID-19 pandemic shipwrecked the stocks of Carnival (NYSE: CCL), Norwegian Cruise Line (NYSE: NCLH), and Royal Caribbean (NYSE: RCL) over the last three months with losses of 60% or more. Chaiken initiated coverage on Carnival, Norwegian, and Royal, though he sees the latter two cruise lines as better investments.
If you believe one Wall Street pro, Royal Caribbean (NYSE: RCL) is the most attractive stock in the battered cruise ship sector. An analyst at Wedbush this week called it a worthy buy compared to peers like Carnival (NYSE: CCL) and Norwegian Cruise Lines (NYSE: NCLH).
The cruise operator shed more light on when and how it might start cruising again, along with the financial implications of doing so.
At this time, I would like to welcome everyone to Royal Caribbean's Group Business Update and First Quarter 2020 Earnings Call. Joining me virtually from their home offices are Richard Fain, our Chairman and Chief Executive Officer; Michael Bayley, President and CEO of Royal Caribbean International; and Carola Mengolini, our Vice President of Investor Relations.
Royal Caribbean Cruises (NYSE: RCL), the parent company of such cruise line brands as Royal Caribbean International, Celebrity Cruises, and Silversea Cruises, announced Wednesday that "given ongoing global public health circumstances [it] has decided to extend the suspension of most sailings through July 31, 2020." Royal Caribbean added that it expects to return to service on Aug. 1. The company's move does not appear to be prompted by additional guidance from the U.S. Centers for Disease Control and Prevention (CDC).
After falling nearly 6% earlier today, shares of cruise line operator Royal Caribbean Cruises (NYSE: RCL) are down 4.5% in early afternoon trading. Instead, Royal Caribbean reported a bigger loss -- $1.48, adjusted for "a non-cash asset impairment loss." Revenue for the quarter was actually slightly ahead of expectations at $2.03 billion, but investors are giving Royal Caribbean no credit for that today.
The country's second-largest cruise line continues to show why it's the most seaworthy of the three troubled players in this market.
The cruise ship industry is getting a major haircut from an analyst at investment firm SunTrust Robinson, who says we may not have seen the bottom of Carnival (NYSE: CCL), Norwegian Cruise Line (NYSE: NCLH), and Royal Caribbean (NYSE: RCL) shares. Analyst C. Patrick Scholes lowered his price target on Carnival 27% from $51 to $37, on Royal Caribbean 38% from $164 to $102, and on Norwegian Cruise Line 32% from $66 to $45.
The cruise industry has faced the brunt of the health crisis as major outbreaks in ships were blamed for spreading the disease, resulting in government-mandated "no-sail" orders and trip cancellations. Royal Caribbean, which warned of a second-quarter loss in the face of a mounting debt, said it would have to pay between $590 million and $610 million in interest for the rest of the year on borrowings to the tune of more than $5 billion. Rivals Carnival Corp and Norwegian Cruise Line have also signaled a similar return in demand.
Royal Caribbean lost $1.4 billion in the first quarter after the coronavirus forced its entire fleet to port. Wall Street, however, overlooked the massive loss Wednesday, focusing instead on bookings for next year. The Miami cruise company said that bookings for 2021 are within “historical ranges.”
Uncertainty has beaten down the stock prices of all three major cruise lines. Royal Caribbean has not cancelled its June and July sailings but they are no likely to happen. Carnival and Norwegian experienced similar share price jumps, but both also remain well below their 52-week highs.
After soaring on Monday, cruise ship stocks pulled back a bit on Tuesday. Shares of Carnival (NYSE: CCL), Royal Caribbean (NYSE: RCL), and Norwegian Cruise Line Holdings (NYSE: NCLH) fell 4.1%, 3.6%, and 3.5%, respectively.
Shares of cruise line operators Carnival (NYSE: CCL), Norwegian Cruise Line (NYSE: NCLH), and Royal Carribbean (NYSE: RCL) were all soaring by double-digit rates Monday morning. Carnival opened 11% higher today and Norwegian and Royal were up 15% each. A series of positive developments inspired hope among cruise ship investors that the worst may be behind the industry and they could extend their rally for a third consecutive trading day.
No industry has gotten hit harder by the coronavirus pandemic than cruise lines. The three major cruise lines, Carnival (NYSE: CCL), Royal Caribbean (NYSE: RCL), and Norwegian Cruise Lines (NYSE: NCLH), have all been forced to dock their ships due to the coronavirus pandemic, and the trio of stocks remain down about 75% since February, despite bouncing aggressively off their lows in recent weeks as some investors spy opportunity for a comeback. It's easy to see why the pandemic is such a nightmare for the industry.
All three cruise line stocks moved lower as layoffs and problematic quarterly results offset improving liquidity snapshots.
Shares of Royal Caribbean Cruises (NYSE: RCL) climbed more than 6% on May 15, following news of the company's debt offering earlier in the week. Royal Caribbean will pay a 10.875% interest rate on $1 billion in debt due on June 1, 2023 and 11.5% on $2.32 billion in debt due on June 1, 2025. The notes will be secured in part by 28 of Royal Caribbean's cruise ships.