Jim Cramer on Royal Caribbean's Earnings: "Looked Good, But the Market Judged It Harshly"

Royal Caribbean Cruises Ltd. (NYSE:RCL) is one of the stocks Jim Cramer recently commented on. Cramer discussed changing consumer spending patterns regarding the industry, as he commented:

“Right now, virtually any stock that relies on consumer spending is doing terribly. Many are deep in bear markets. Doesn’t matter how well the CEO says the business is doing. If the consumer has to pay for it and the price has gone up, then the consumer feels like she’s been had. Last week, for example, Royal Caribbean, a cruise line that’s done incredibly well since the pandemic, reported a quarter that looked good, but the market judged it harshly anyway because the reservation book didn’t fill up fast enough. That’s supposedly a sign that the consumer’s getting tired of taking cruises.”

Royal Caribbean Cruises Ltd. (NYSE:RCL) operates a fleet of cruise ships that provide travel experiences under the Royal Caribbean, Celebrity, and Silversea brands. Cramer discussed the company’s recent earnings and guidance during the October 28 episode and stated:

“But we also got, this is a new one that I saw today, the disappointing results from Royal Caribbean. Now, they’ve been leading the cruise lines higher for a very long time. This group’s done remarkably well this year. But today, Royal Caribbean gave disconcerting guidance for the current quarter and next year, and that’s why the stock plunged almost 9% in response. Now, after speaking with CEO Jason Liberty on Squawk on the Street this morning, I think maybe that decline was an overreaction. He had a lot of good things to say. Still, the market is saying that the consumers have become choosier about what to spend on and how much to spend.”

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Disclosure: None. This article is originally published at Insider Monkey.