AG Edwards lowers earnings estimates for RCCL

AG Edwards reduced its earnings estimates for Royal Caribbean Cruises citing slow bookings, Caribbean softness and fuel prices.

The report looks at Royal Caribbean and Carnival, and noted that pricing is strong outside the Caribbean, and that long Caribbean itineraries are the weakest. 

The report reaffirmed the firms buy ratings for both Carnival and Royal Caribbean, but said its mood remained more cautious. It says investors will want further evidence that pricing issues in the Caribbean will remain specific to that market and that fuel prices will stabilize.

Year over year, Royal Caribbeans pricing is flat or down in the Caribbean and Alaska while Carnival is down, but not as much, in the Caribbean, and is up in Alaska.

The report also says that the 2006 Wave season was "ok (not great/not a disaster) versus the '05 very strong comparison."

To contact the reporter who wrote this article, send e-mail to Johanna Jainchill at [email protected].


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