Dec. 24 - USAA's Bernie Williams says Royal Caribbean has a better outlook for passenger ticket revenues than its rival and feels the cruise operator can beat consensus earnings estimates in 2013.
You like your portfolio that failed and that some nice returns Woodstock which it. Carnival Cruise Lines will -- -- it for you as one obviously expected to make these days. Well one of those today. -- and -- like them both. You can only one which. What is the NY. That we go to Royal Caribbean and the reason why is we think if I have very strong pricing power in particular. -- here why is that. Well several reasons fuel costs are -- that's my reason. More importantly we're anniversary of the concordia grounding which tends depressed prices across the industry. And shipbuilding has been constrained and so you have passed you rationalizations going. Valuation -- outside while we're in a better value even after 40% up and its stock price when you look at what's happening what are on the side. Yes they are cheaper one visas that are more highly leveraged out with earnings growth and cash flow -- -- pay down debt. And am very strong earnings growth prospects for the coming year how strong. They'll be gone from about about 95 this year to round 217 excuse that consensus we think there's upside -- sent. No worries about the economy here as -- as a whole back -- May not take great. We think consumers that tend to protect their vacation plans EP and cutback in other areas as prisoners and. Europe is battle -- both of these cruise lines do have -- out of your. Yes it is a risk they do returning crews out -- power they you have the ability to ship those ships around you graphically. And Europe is recovering. What is at this point though outlook for the Royal Caribbean stopped next year considering this very right up strong -- at this point. Well given your earnings growth now it looked relatively cheap and we think he's he's -- in the forties. What's the risk telling us today. Well economic risk they are sensitive to economy we have been down. It will content to and industry but yeah it. Now we've -- it -- slow growth. To slow growth economy. All right pretty much your take on Royal Caribbean and Carnival Cruise Lines I'm Rhonda -- this is Reuters.