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Royal Caribbean Cruises Ltd. (RCL), a global cruise company with a market cap of around $42 billion, operates in the contemporary, premium, and deluxe segments of the cruise vacation industry. The Miami, Florida-based company is expected to announce its fiscal Q2 earnings results on Thursday, Jul. 25.
Ahead of this event, analysts expect RCL to report a profit of $2.76 per share, up 51.7% from $1.82 per share in the year-ago quarter. The company holds a solid track record of surpassing Wall Street's bottom-line estimates in each of the past four quarters. Higher ticket pricing and record bookings during the "wave season" helped the company surpass the consensus EPS estimate by 35.1% in the most recent quarter.
For fiscal 2024, analysts expect RCL to report EPS of $11.10, up nearly 64% from $6.77 in fiscal 2023.
RCL has outperformed the broader markets in 2024, with shares up 25.6% on a YTD basis versus the S&P 500 Index's ($SPX) 18.1% gain and the Defiance Hotel Airline And Cruise ETF's (CRUZ) 1.4% returns over the same period.
Royal Caribbean's stock rose 2.3% following its better-than-expected Q1 earnings reported on Apr. 25 due to soaring demand for vacations at sea. This allowed the company to raise ticket prices significantly and prompt an upward revision of its annual profit forecast. Moreover, the stock saw substantial gains in 2024, driven by strong earnings growth and expanding market appeal. With record bookings and increased profitability, coupled with new ship launches and resort-style destinations, the company's outlook appears promising for sustained momentum in the near term.
Analysts' consensus view on Royal Caribbean Cruises stock is bullish, with a "Strong Buy" rating. Out of 17 analysts covering the stock, 13 recommend a "Strong Buy," one has a "Moderate Buy" rating, and three give a "Hold" rating. This configuration is slightly more bullish than three months before, with 12 analysts suggesting a "Strong Buy."
The average analyst price target for RCL is $166, suggesting a potential upside of just 2% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
