Bulletin
Investor Alert

Market Pulse Archives

Jan. 29, 2020, 9:32 a.m. EST

Royal Caribbean says China travel restrictions will likely shave 10 cents off 2020 per-share earnings

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Royal Caribbean Cruises Ltd. (RCL)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

By Ciara Linnane

Royal Caribbean Cruises Ltd. /zigman2/quotes/208854639/composite RCL +4.43% said Wednesday that the travel restrictions that have led it to cancel three sailings to China through Feb. 8 will likely shave 10 cents off its 2020 per-share earnings. If the current restrictions, put in place to contain the outbreak of a coronavirus, were to continue to the end of February, it would likely shave another 10 cents off the 2020 figure. "There are still too many variables and uncertainties regarding this outbreak to calculate the overall impact on the business," the company said in a statement. "For example, we expect an erosion of consumer confidence in China could have an additional impact on load factor and rate in the region until the market normalizes." If the restrictions were to continue for a longer period, "they could have a material impact on the overall financial performance of the company," the statement said. Royal Caribbean has just one ship based in China for the winter sailing season, but two additional ships are slated to join in May and July. China represents about 6% of the company's overall 2020 capacity. The company is expecting to report fourth-quarter earnings on Feb. 4 and will discuss its 2020 outlook then. Shares rose 0.9% in early trade Wednesday, but are down 9% in the month to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.82% has gained 1.5%.

/zigman2/quotes/208854639/composite
US : U.S.: NYSE
$ 80.41
+3.41 +4.43%
Volume: 9.94M
Feb. 28, 2020 6:30p
P/E Ratio
8.99
Dividend Yield
3.88%
Market Cap
$16.81 billion
Rev. per Employee
$123,297
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
2,954.22
-24.54 -0.82%
Volume: 5.14B
Feb. 28, 2020 5:06p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.