=Royal Caribbean (RCL) reported earnings on Tue 2 Aug 2016 (b/o)

Royal Caribbean beats by $0.07, misses on revs; guides Q3 EPS below consensus; guides FY16 EPS below consensus :

• Reports Q2 (Jun) earnings of $1.09 per share, $0.07 better than the Capital IQ Consensus of $1.02; revenues rose 2.3% year/year to $2.11 bln vs the $2.17 bln Capital IQ Consensus.
• Net Yields were up 1.1% on a Constant-Currency basis (down 0.5% As-Reported), in-line with previous guidance.
  Net Cruise Costs excluding fuel were up 1.9% on a Constant-Currency basis (up 1.5% As-Reported), in-line with guidance.
• Co issues downside guidance for Q3, sees EPS of $3.10 vs. $3.38 Capital IQ Consensus Estimate. RCL expects Constant-Currency Net Yields to be up approximately 2.0%. The year-over-year improvement is primarily driven by the deconsolidation of the Pullmantur Group.
• Co lowers guidance for FY16, sees EPS of $6.00-$6.10, down $0.20 from the midpoint of earlier guidance, and vs. $6.21 Capital IQ Consensus Estimate. The lowered guidance is due to a $0.27 negative impact from currency and fuel rates, of which approximately $0.14 is related to weakness in the British Pound following the Brexit vote. Sees a 3.3% capacity increase for FY16 and net yields of approximately 4.0-4.5% at constant currency.