On July 28, Royal Caribbean Cruises fell 5.42% in pre-market trading, trading at 284.6 USD/share, with turnover of approximately $597,900.
On the news front, the company released its Q2 earnings before market open, with results beating expectations and management raising full-year guidance. Market consensus had called for revenue of $4.817 billion (up 6% year-over-year) and adjusted EPS of $3.97. Despite the strong results, the stock gave back the prior session's 3.56% gain to $301.94, which had been driven by earnings anticipation and falling oil prices.
The decline reflects a classic profit-taking pattern, as bullish catalysts had already been priced in. Additionally, Morgan Stanley had previously flagged potential headwinds from lower H2 net yields due to the ongoing Iran conflict. The company disclosed medium-term capacity growth plans of 4%, 6%, and 7% for the next three years respectively. Within the Hotels, Resorts and Cruise Lines sector, peer Carnival fell 2.8%, indicating broader cooling in cruise stock sentiment.
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