"Shares are down 13% in the last month, with the majority of that coming in the last two days after the company reported weak earnings that missed expectations. Though, Royal Caribbean revenue was up to $5.14 billion, a 5.2% increase over the prior period, this fell short of the $5.17 billion retail investors and Wall St were expecting. And things look worse the deeper you dig."
"While most users on Reddit this past week have been discussing the on board credit (OBC) discount offered to Royal Caribbean shareholders (similar to Geico's insurance discounts offered to Berkshire Hathaway shareholders) there are some other interesting tidbits. As you can see, Reddit users are pretty negative on Royal Caribbean the company, frustrated by the miserly level of service. But more than applying just to their personal experience, this is seen as a reason the company is underperforming."
Royal Caribbean experienced a sharp sell-off after reporting earnings that missed expectations, driving social sentiment down to 32/100 from 42/100 a week earlier. Shares fell 13% over the past month, with most of the decline occurring in the two days after the report. Revenue rose to $5.14 billion, a 5.2% increase, but missed the $5.17 billion expectation. Passengers carried totaled 2.47 million versus 2.56 million expected. Net cruise costs excluding fuel per APCD were $123.75 versus $125.98 expected, while APCD declined to 13,698.9 versus 13,702.2 expected. Online commentary criticized service levels and highlighted shareholder OBC discounts; some social posts compared Royal Caribbean’s reaction to peers.
Read at 24/7 Wall St.
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