- Royal Caribbean (RCL +8.5%) surges at the open after Q2 earnings soared as demand for its European cruises rose and passengers spent more on board.
- Q2 net yields, which include ticket sales and spending on board, rose 2.6%, excluding the impact of currency fluctuations; RCL says the result reflected strong close-in booking trends for European and China sailings despite continued softness in the Caribbean.
- Net cruise costs excluding fuel fell 4.7%, excluding currency impacts.
- Issues upside guidance for Q3, seeing EPS of ~$2.20 vs. $2.12 analyst consensus estimate, with expected net yields of ~4%; raises guidance for FY 2014, seeing EPS of $3.40-$3.50 from earlier $3.25-$3.45 vs. $3.40 consensus.
- Unveiled its "double-double program," which sets targets to double RCL's EPS by 2017 vs. 2014 levels as well as raise its return on invested capital by double digits.