“Royal Caribbean (RCL)’s Come Down Too Much,” Says Jim Cramer

Core Viewpoint - Royal Caribbean Cruises Ltd. (NYSE:RCL) has faced a 15% decline in share price over the past month, primarily following its fiscal third-quarter earnings report released on October 28th, which revealed a lower-than-expected fourth-quarter profit guidance [2][3]. Group 1: Financial Performance - The company's fiscal third-quarter earnings report indicated that while the actual numbers were not significantly negative, the fourth-quarter revenue outlook was disappointing, with expected profit-per-share guidance revised down to between $2.74 and $2.79, compared to analyst expectations of $2.89 [2]. - Jim Cramer defended the company's performance, suggesting that the results were not as bad as perceived, despite the stock's recent troubles [2]. Group 2: Market Context - Cramer highlighted the impact of the experiential economy on Royal Caribbean, noting that the sector has experienced a downturn, but he believes the company has been oversold [3]. - There is a general sentiment of caution among consumers regarding experiences, but Cramer anticipates a shift away from this negative sentiment soon, particularly for well-executing companies like Royal Caribbean [3].