RCL's$Royal Caribbean Cruises(RCL)$ growing deposits and load factor demonstrate the consumers' willingness to spend, despite the higher ticket/onboard prices, contributing to the expanded Net Yields and EBITDA margins. With the management continuously raising its FY2023 adj EPS projection to $6.10, compared to FQ1'23 guidance of $4.60 and FQ4'22 guidance of $3.30, the euphoria is unsurprising indeed. However, RCL's valuations remain inflated at NTM P/E of 16.94x, compared to its pre-pandemic mean of 11.61x, with the elevated interest rate environment remaining a profitability headwind for now. The cruise line guided up to a $6+ EPS for the year on the way to reaching the 2025 goal for a $10 target. The stock is no longer a massive bargain, but Royal Caribbean only trades at 11.5x '25 consensus estimates.//@Tiger_Earnings:
1. $Align Technology(ALGN)$ +13.38%: got upgraded followed better-than-expected revenues
Align Technology, an orthodontics company, surged 14% after posting adjusted earnings of $2.22 per share for the second quarter, beating estimates of $2.02 per share, according to Bloomberg.
Adjusted EPS: $2.22 vs. $2.02
Revenue: $1 bln vs. $990.36 mln
Revenue for the quarter also topped estimates, and revenue guidance for the year was above analyst expectations. Q2'23 total revenues of $1.0 billion, increased 6.34 sequentially, beating estimates of $990.36 mln.
Q2'23 Clear Aligner cases for teenagers increased 7% sequentially and 10% yoy, driven by momentum in both Submitters and Utilization and continued growthm Invisalign First.
Analysts raise their price targets for the medical-devices company after it reported sales that topped estimates and reinstated its full-year guidance.
Evercore ISI, Elizabeth Anderson (outperform, PT to $400 from $370)
Baird, Jeff D. Johnson (outperform, PT to $405 from $385).
Piper Sandler, Jason Bednar (overweight, PT to $415 from $370)
2. $Textron(TXT)$ +11.87%: adjusted EPS outlook except for double beats
Textron jumped as much as 12% to an 18-month high on Thursday after the industrial company beat the average earnings estimate among Wall Street analysts.
Adjusted EPS: $1.46 vs. $1.20
Revenue: $3.42 bln vs. $3.40 bln
EPS outlook: $5.20-$5.30 vs. $5.00-$5.20
Adjusted EPS of $1.46 beat the consensus estimate of $1.20.
Revenue rose 8.6% from a year earlier to $3.42 billion, matching the consensus estimate.
Management raised its full-year adjusted EPS outlook to $5.20 to $5.30 from the previous range of $5.00 to $5.20 provided in January.
The company's Bell helicopter unit saw a 2% increase in revenue to $701 million, attributed to higher pricing of $21 million and partly offset by lower military volume of $7 million.
3. $Overstock.com(OSTK)$ +12.64%: revenue beat justifies company’s acquisition of $Bed Bath & Beyond(BBBYQ)$
Shares of internet retailer Overstock are popping sharply on Thursday following the disclosure of its second-quarter earnings report. Encouragingly, Overstock beat Wall Street expectations for profitability and revenue, thus justifying the company’s acquisition of the intellectual property (IP) of Bed Bath & Beyond.
The company posted total net revenue of $422 million for Q2. On the bottom line, net loss came out to $73 million while diluted net loss per share was $1.63. Additionally, adjusted diluted net loss per share (non-GAAP basis) landed at 2 cents.
Revenue: $422 mln vs. $408.22 mln
4. $Quantumscape Corp.(QS)$ +14.30%: hits August high
QuantumScape jumps as much as 42% to its highest level since August 2022, after the auto parts manufacturer reported adjusted Ebitda and operating losses for the second quarter that came in better than Wall Street feared.
Adjusted Ebitda loss $63.5 million, estimate loss $64.2 million
Loss per share 26 cents vs. loss/share 22 cents y/y, estimate loss/share 20 cents (Bloomberg Consensus)
Adjusted EPS: -$26 cents vs. -20 cents
QuantumScape also reported positive updates and developments about QuantumScape's advancements in its battery technology and commercialization efforts.
5. $Royal Caribbean Cruises(RCL)$+8.72%: beat EPS, revenue and outlook
Royal Caribbean Cruises Ltd. rose 8.6% after raising its full-year profit forecast. The company now anticipates adjusted earnings per share (EPS) for the year to be in the range of $6.00 to $6.20. This new forecast is substantially higher than the company's previous projection of $4.40 to $4.80 per share.
Adjusted EPS: $1.82 vs. $1.57
Revenue: $3.52 bln vs. $3.40 bln
The raised profit forecast has exceeded the expectations of analysts, who had estimated an average EPS of $4.73 for the year. This positive surprise has generated increased investor confidence, leading to a surge in Royal Caribbean's stock price.
The improved outlook for Royal Caribbean is likely due to the perception that there is increased demand for cruises, signaling potential recovery for the cruise industry.
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I bought 10k shares back when it was $45, stayed with it and sold it all at $109.50. Back then many analysts were giving it thumbs down and predicted bankruptcy. My advise is, don’t listen to anyone, be patient and listen to your inner self.
People is going broke. Trend going to fade soon. Ima sell this short. Royal customers is not wealthy they r lower level imagrants
Biggest gap ever between rcl vs other stocks. Overpriced most
we should get upgrades tomorrow! 120 after NCLH earnings
Pricing is too high. I booked on Carnival therefore
profit taking, going way back up!