Royal Caribbean Cruises, Ltd. (RCL) Stock | Impressive Q3 Results

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Royal Caribbean Cruises, Ltd. (NYSE: RCL)

 

Royal Caribbean Cruises, Ltd. (RCL),  a cruise company announced on Friday positive third quarter financial results and raised their adjusted earning guidance to approximately $4.80 per share. Company also announced $500 million share repurchase program, and a non cash write down of $399.3 million regarding the Pullmantur brand.

 

Royal Caribbean Cruises, Ltd. CEO Comments

“Our business trajectory keeps us solidly on the path to the Double-Double,” said Richard D. Fain, chairman and chief executive officer. “Even though we are disappointed to have such a large non-cash charge related to Pullmantur, we are enthusiastic about the overall strength of our brands and our ability to continue our dramatic profitability growth.”  PR Newswire

Comments regarding impairment charges and right sizing of brand :

“The right-sizing of the Pullmantur fleet will better balance supply with demand for the brand in the Spanish market,” said Richard D. Fain, chairman and chief executive officer. “These changes should put Pullmantur on a more successful course for the future.”  PR Newswire

 

RCL Technical Analysis

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RCL gapped up in price on Friday to $96.47, up from the prior day’s close of $94.70, which is a 2% increase in price based on favorable news. Taking a look at the daily chart, we can see the last time the stock traded above this price level was on September 21st, when it closed at $97.20. Taking a further look back on the chart we can see the stock has been on an overall upward trend dating back to the May 5th lows of $66.55. More recently, the stock has been on a rebound spike up dating back to October 14th when the stock was trading at $87.10. The stock does have a high float of 178.74 million shares and is trading below the average daily volume for the day. Based on the favorable news, I would be looking to catch some of this run up in the stock. The stock did reach pre market highs of $98.77, but gave back $2.30 at the open, or equivalent to 2%. For trading purposes my entry point would have been $96.50 looking for a move to $98. My stop loss would have been $96.25 fearing anything below that and the stock would start to fill in the gap up.

 

Company Profile

Royal Caribbean Cruises, Ltd. operates as a cruise company. The company operates cruisers under the Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisières de France, and TUI Cruises brand names. The Royal Caribbean International brand provides cruise itineraries ranging from 2 to 18 nights with options for onboard dining, entertainment, and other onboard activities to various destinations. The Celebrity Cruises brand offers cruise itineraries ranging from 3 to 23 nights various destinations; and operates onboard upscale ships that offer accommodations, fine dining, personalized services, and spa facilities. The Azamara Club Cruises brand offers cruise itineraries ranging from 4 to 20 nights that serve the up-market segment of the North American, the United Kingdom, and Australian markets. The Pullmantur brand provides cruise itineraries ranging from 2 to 17 nights with various cruising options and onboard activities for couples and families traveling with children. The CDF Croisières de France brand offers seasonal itineraries to the Mediterranean, Europe, and Caribbean markets. The TUI Cruises brand provides onboard activities, services, shore excursions, and menu offerings for the German cruise market. As of December 31, 2014, the company operated a total of 43 ships with itineraries ranging from 2 to 23 nights on approximately 480 destinations worldwide. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.  Yahoo Finance

 

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