Down 24.5% year to date, Royal Caribbean (NYSE: RCL) hasn't escaped the impact of the 2022 bear market -- a cocktail of high inflation and rising interest rates that's battering the stock market in the wake of the COVID-19 pandemic. That said, management is hopeful about its ability to turn these near-term challenges into long-term success.

In November, the company announced its Trifecta Program, a three-year financial performance framework designed to chart a pathway to earnings above $10 per share (up from negative $6.89 over the trailing 12 months) by enhancing its ship capacity, using capital more efficiently, and keeping costs under control. Let's discuss three reasons achieving Royal Caribbean's ambitious goal will be easier said than done.

While Royal Caribbean is bouncing back from the worst of the coronavirus pandemic, there is still work to be done. Third-quarter revenue surged 555% year over year to $2.99 billion because of easy comparisons against the prior-year period. But while this represents a convincing recovery, sales are still below the $3.19 billion generated this time in 2019.

Continue reading

Source Fool.com