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Based in Miami, Florida, Royal Caribbean Cruises Ltd. (RCL) is a global cruise and leisure travel leader, delivering exceptional vacation experiences through its innovative fleet and world-class itineraries. With a market cap of $61.8 billion, it operates across various segments, including luxury cruises, adventure travel, and destination services, offering unparalleled opportunities for travelers to explore and connect with the world. The company is set to release its Q4 earnings before the market opens on Tuesday, Jan. 28.
Ahead of the event, analysts expect Royal Caribbean Cruises to report a profit of $1.49 per share, up 19.2% from $1.25 per share reported in the year-ago quarter. Moreover, it has surpassed Wall Street’s adjusted EPS projections in the past four quarters. Royal Caribbean's EPS of $5.20 for the last reported quarter surpassed the consensus estimates by 3%. The company's Q3 2024 performance exceeded expectations, driven by strong pricing, onboard revenue growth, and effective cost management.
For fiscal 2024, analysts expect RCL to report an adjusted EPS of $11.65, up 72.1% from $6.77 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 23.8% year-over-year to $14.42.
Shares of Royal Caribbean Cruises’ have gained 89.5% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 22.1% rise and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 27.4% return over the same period.
Royal Caribbean Cruises delivered a solid Q3 earnings result on Oct. 29, and the stock surged 3.2%. While revenue rose 17.4% year-over-year to $4.9 billion, meeting estimates. EBITDA of $2.15 billion outpaced forecasts by 4.6%, supported by robust demand and improved margins. Additionally, the company has provided an optimistic outlook for the full year 2024, with Net Yields expected to increase by 10.8% to 11.3% in Constant Currency and 10.9% to 11.4% on a reported basis, reflecting strong demand and pricing trends. Non-fuel cruise costs (NCC), excluding fuel, per APCD are anticipated to rise by 6.2% to 6.7% in both Constant Currency and reported terms, primarily driven by increased stock-based compensation expenses.
Analysts’ consensus opinion on RCL stock is bullish, with a “Strong Buy” rating overall. Out of 20 analysts covering the stock, 15 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and four give a “Hold.” RCL’s average analyst price target is $255.19, indicating a potential upside of 11.1% from the current levels.
