Royal Caribbean Profits Beat Expectations

Royal Caribbean Cruises Ltd. said its third-quarter earnings rose 13%, beating expectations amid strong demand for North American itineraries.

Shares climbed 5% to $71.46 in premarket trading.

Royal Caribbean also pointed to strong 2017 bookings that are ahead of last year's by rate and volume as an indicator for a solid outlook for the next fiscal year.

Some investors have become skeptical of the cruise industry as prices stalled in the Mediterranean and Chinese markets last month. Banks slashed estimates for Royal Caribbean earlier this month and downgraded its smaller competitor Norwegian Cruise Line Holdings Ltd.

Royal Caribbean's earnings for the quarter rose to $693.3 million, or $3.21 a share, from $228.8 million, or $1.03 a share, in the same period a year ago. Excluding certain items, adjusted earnings per share came to $3.20, above the $3.10 estimated by analysts polled by Thomson Reuters.

Revenue increased 1.6% to $2.56 billion, just under consensus estimates of $2.58 billion.

The Miami-based company backed its 2016 guidance of earnings between $6 and $6.10 per share. Analysts polled by Thomson Reuters are expecting $6.02.

Write to Imani Moise at [e-mail]

(END) Dow Jones Newswires

October 28, 2016 09:55 ET (13:55 GMT)

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