HomeRoyal Caribbean Cruises Ltd.Royal Caribbean Cruises Reports Q2 2018 Earnings August 3, 2018Celebrity Silhouette Arriving into Miami on March 4, 2018.Royal Caribbean Cruises Ltd. (NYSE: RCL) reported record second quarter results and reaffirmed its full year Adjusted EPS guidance of $8.70 to $8.90 per share. The company noted that this guidance includes a $0.35 negative impact from currency and fuel since the April guidance. This negative impact is being offset by better second quarter results and an improved revenue outlook. For the second quarter, the company reported US GAAP earnings of $2.19 per share and adjusted earnings of $2.27 per share, beating guidance by $0.39 per share.KEY HIGHLIGHTSResults for the Second Quarter 2018:US GAAP Net Income was $466.3 million or $2.19 per share and Adjusted Net Income was $482.2 million or $2.27 per share versus US GAAP and Adjusted Net Income of $369.5 million or $1.71 per share in 2017. Gross Yields were up 2.7% in Constant-Currency (up 3.7% As-Reported). Net Yields were up 2.8% in Constant-Currency (up 3.8% As-Reported). Gross Cruise Costs per APCD increased 1.1% in Constant-Currency (up 1.8% As-Reported). Net Cruise Costs (“NCC”) excluding Fuel per APCD were up 1.1% in Constant-Currency (up 1.8% As-Reported). Full Year 2018:Adjusted earnings for the full year are expected to be in the range of $8.70 to $8.90 per share. Net Yields are expected to increase 2.75% to 3.75% in Constant-Currency (up 3.25% to 4.0% As-Reported). NCC excluding Fuel per APCD are expected to be up approximately 2.5% in Constant-Currency (up approximately 3.0% As-Reported). “While we are frustrated by foreign exchange and fuel rates, we are tickled pink that our business continues to excel and overcome these headwinds,” said Richard D. Fain, chairman and CEO. “It is a pleasure to prove, once again, how strong our brands are and to demonstrate continued upside to our yields while maintaining strong expense control.”Royal Caribbean’s Symphony of the Seas right after departing STX France shipyardSECOND QUARTER 2018US GAAP Net Income for the second quarter of 2018 was $466.3 million or $2.19 per share and Adjusted Net Income was $482.2 million or $2.27 per share. Last year, both US GAAP and Adjusted Net Income were $369.5 million or $1.71 per share. The company beat the Adjusted EPS guidance for the second quarter by $0.39. Such a high level of favorability is unusual and was driven by a noteworthy confluence of factors including: better than expected revenue from the global brands, better performance from the joint ventures and lower than expected expenses which were driven by timing.Gross Yields were up 2.7% and Net Yields were up 2.8% in Constant-Currency, exceeding prior guidance due to strong close-in demand for our core products and better onboard revenues.Gross Cruise Costs per APCD increased 1.1% in Constant-Currency. Net Cruise Costs (“NCC”) excluding Fuel per APCD were up 1.1% in Constant-Currency, lower than guidance, driven by the timing of hotel and marine related projects and marketing related expenses.Additionally, better than expected performance below the line, mainly due to additional returns from our joint ventures, contributed to the quarter’s unusually high performance.Bunker pricing net of hedging for the second quarter was $513.6 per metric ton and consumption was 335.5 metric tons.Since our last call, the company repurchased $300 million in shares as part of the $1 billion repurchase program authorized in May 2018.