Shares of Royal Caribbean sink 13% after Q1 guidance falls short of estimates

[Beachammo]

Royal didn't meet expectations....

[yogimax]

Royal didn't meet expectations....

 

Here's the real problem...

 

"The company said first quarter earnings will be impacted by costs associated with its expansion in China, perparatory costs for its new Ovation of the Seas and Harmony of the Seas ships, and new marketing campaigns. 'As a result, costs are more concentrated than usual in the first quarter'"

[pjnj40]

I wouldn't worry to much. i got this stock since ecumenic turn around. I made bundle of it. I seen some day had bad day and it was like whoa for few days, but in the end it came back to normal and go higher. Also since the divined is there i rolled it over to keep buying more.

[FLACRUISER99]

Here's the real problem...Zika

[CaptainUnlucky]

It probably doesn't help that several other crusie lines are offering free perks . Offering a free drink package is huge! It made us chose NCL last time. The BOGO is not really a sale the prices are higher at BOGO then they were a year or two ago without it. Yes you can raise the price and call it BOGO. (New cruisers may think this is great but repeat cruisers know better) I've always cruised with RCCL but and have never considered any other lines until the last year or so. I am trying Oasis this year because the price is ok because it is off season and I really want to try an Oasis class ship . But if they do not start to offer the same kinds of deals everyone else is , they will not only lose some of my business they will lose a lot of business!

[Buccaneergirl]

It probably doesn't help that several other crusie lines are offering free perks . Offering a free drink package is huge! It made us chose NCL last time. The BOGO is not really a sale the prices are higher at BOGO then they were a year or two ago without it. Yes you can raise the price and call it BOGO. (New cruisers may think this is great but repeat cruisers know better) I've always cruised with RCCL but and have never considered any other lines until the last year or so. I am trying Oasis this year because the price is ok because it is off season and I really want to try an Oasis class ship . But if they do not start to offer the same kinds of deals everyone else is , they will not only lose some of my business they will lose a lot of business!

 

Totally agree with you! We also cruised NCL for the first time last November with the free drink package. We sailed their new ship, Escape and loved it. The food was outstanding.

[Goodtime Cruizin]

Big Ships, Rapid Expansion, and a new virus to deal with... I see future price decreases coming our way.

[jticarruthers]

Big Ships, Rapid Expansion, and a new virus to deal with... I see future price decreases coming our way.

 

I'm hoping :)

[yogimax]

Here's the real problem...Zika

 

Respectfully disagree. Zika is just a blip. It's impact will be minimal. The real problem is the amount of money spent on capital expenditures and marketing costs in a highly competitive market environment.

[FLACRUISER99]

Respectfully disagree. Zika is just a blip. It's impact will be minimal. The real problem is the amount of money spent on capital expenditures and marketing costs in a highly competitive market environment.

Who knows? Neither of us have a Crystal Ball! The real problem may be Royals sub par CS and foolish cost cutting that cheapens their product. Edited February 2, 2016 by FLACRUISER99

[btoneill]

Time to buy stock! Get your $100 onboard credit! :)

[Ocean Boy]

Time to buy stock! Get your $100 onboard credit! :)

 

RCI finds plenty of ways to deny that OBC.

[Ocean Boy]

Respectfully disagree. Zika is just a blip. It's impact will be minimal. The real problem is the amount of money spent on capital expenditures and marketing costs in a highly competitive market environment.

 

I'm not so sure about that blip. Plenty of young couples cruise who are either early in pregnancy or ready for pregnancy. Past issues with infections have typically involved what happens to the infected person. This one involves their child. That is a whole different ballgame. This virus is just revving up. And just recently someone in the US contracted it from having sex with a person you acquired it in the Caribbean so a mosquito vector does not have to be involved in the transmission.

 

It remains to be seen right now where this all goes.

[pjnj40]

All the stock i had for years. Yesterday was the worst dive especially the RCCL. It dropped 12 dollars and some change. Just don't based on reasons because of zika, big ship, ending discount etc etc. You need to understand all the other stocks took a plunge as well. I am sure there is a big dives that is much worse then RCCL. it alway will bounce back up later.

[Clarea]

All the stock i had for years. Yesterday was the worst dive especially the RCCL. It dropped 12 dollars and some change. Just don't based on reasons because of zika, big ship, ending discount etc etc. You need to understand all the other stocks took a plunge as well. I am sure there is a big dives that is much worse then RCCL. it alway will bounce back up later.

It may have been the worst drop in raw dollars, but it was not the worst percentage drop. We bought some at around $30, and it went down to $6.

[yogimax]

It may have been the worst drop in raw dollars, but it was not the worst percentage drop. We bought some at around $30, and it went down to $6.

 

True, but not in one day.

[btoneill]

IMHO the reason for the drop has to do with the Fed rate increase with the amount of debt with floating interest rates that RCCL has.

[A&L_Ont]

I'm not so sure about that blip. Plenty of young couples cruise who are either early in pregnancy or ready for pregnancy. Past issues with infections have typically involved what happens to the infected person. This one involves their child. That is a whole different ballgame. This virus is just revving up. And just recently someone in the US contracted it from having sex with a person you acquired it in the Caribbean so a mosquito vector does not have to be involved in the transmission.

 

It remains to be seen right now where this all goes.

 

It just involved a different type of stinger.;) All joking aside there is much that has to be learned about the Zika virus.

[setsail]

It's the meatloaf:p

[Ocean Boy]

It just involved a different type of stinger.;) All joking aside there is much that has to be learned about the Zika virus.

That was funny.:D All joking aside, you are right. There is a lot to learn. And I suspect the more publicity this virus gets the more young couples will very much consider whether a few days on a cruise is worth the possible risk of a lifetime with an unhealthy child.

[Ocean Boy]

It's the meatloaf:p

You mean the meatloaf that someone reported has been put in the Windjammer carving station?:eek::D

[setsail]

You mean the meatloaf that someone reported has been put in the Windjammer carving station?:eek::D

 

Close, yes, the ranch steak from a few years ago has been brought back. Now ground up as meatloaf;)

[pjnj40]

True, but not in one day.

 

Exactly.

[knittinggirl]

RCI finds plenty of ways to deny that OBC.

We owned RCI stock for years, and never gotten OBC.

 

Today, I compared HAL vs Royal 7 day Alaska. September 10 vs September 9. HAL about $1,800, Royal ~ $2200.

 

Most of the cruises we've been on have the majority of their passengers way above the childbearing age. So, Zika isn't as big a problem. Not all cruises, our Snowbird Migration had an older demographic, while the very next cruise, we had a mode of passenger 10-15 years younger. Our 14-night Snowbird would have been impossible for working people to take just two weeks off, but the 11-night it's possible.

 

Forgot to mention, we sold our stock last year after the bad reviews on Quantum came out. Four new ships in 3 years, and more on the way. Cutbacks seems to happen when the new ships come out, and I've never seen so many builds all at once. Does Royal get a better deal with more ship orders?

Edited February 3, 2016 by knittinggirl

[Big_G]

Sounds like a buying opportunity if you're into buying cruise line stocks.