When Royal Caribbean Cruises Ltd. (NYSE: RCL | RCL Price Prediction) reported its most recent quarterly results before the markets opened on Monday, the cruise line operator said that it had a net loss of $6.13 on $175.61 million in revenue in the second quarter. Consensus estimates had called for a $4.82 net loss per share and $43.5 million in revenue. The same period of year reportedly had $2.54 in EPS and $2.81 billion in revenue.
For comparison, the company posted $107.02 million in passenger ticket revenues and $68.58 million in onboard and other revenues. The same period of last year saw $2.02 billion in passenger ticket revenues and $788.80 million in onboard and other revenues.
Royal Caribbean has suffered from a lack of bookings due to the coronavirus pandemic. At the end of the quarter, the firm had $1.8 billion in customer deposits, of which about $300 million were related to fourth-quarter sailings. Nearly 48% of the guests booked on canceled sailings have requested cash refunds.
As it stands, the firm estimates its cash burn to be in the range of about $250 million to $290 million per month on average during this prolonged suspension of operations. This range includes all interest expenses, including the increases driven by the latest capital raises.
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On the books, cash and cash equivalents totaled $4.15 billion at the end of the quarter, up from $243.74 million at the end of the previous year.
The company issued no guidance for the third quarter. However, analysts are calling for a net loss of $4.65 per share and $194.83 million in revenue for the quarter.
Royal Caribbean stock traded up about 9% at $56.91, in a 52-week range of $19.25 to $135.32. The consensus price target is $60.00.
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