Royal Caribbean Reports Strong Q4, Exceeds Wall Street Expectations
Royal Caribbean Cruises Ltd. surpassed analysts' estimates for its annual profit forecast on Tuesday, driven by robust cruise bookings to private destinations and premium voyages to the Mediterranean and Alaska.
Premarket Stock Surge
Shares of the cruise operator surged 3.5% in premarket trading following the announcement.
Growing Cruise Demand
The popularity of sea-based vacations has witnessed a significant increase in recent times. Cruise operators, including Royal Caribbean, have invested heavily in introducing new ships and enhancing private-destination itineraries.
CocoCay's Popularity
Royal Caribbean has experienced strong demand for CocoCay, its private island destination in the Bahamas, featuring amusement park-like attractions and amenities.
2025 Outlook
"2025 is shaping up to be another great year, with expected adjusted earnings growth of 23%," said Jason Liberty, CEO of Royal Caribbean Group.
Financial Performance
For the full year, Royal Caribbean anticipates adjusted earnings per share between $14.35 and $14.65, exceeding the consensus estimate of $14.41 by LSEG.
Quarterly revenue climbed to $3.76 billion from $3.33 billion in the same period last year, outpacing analysts' projection of $3.77 billion.
Adjusted quarterly earnings per share reached $1.63, surpassing estimates of $1.50.