- Royal Caribbean’s first-quarter adjusted EPS forecast is between $2.43 and $2.53, exceeding the estimate of $2.34.
- Anticipated Available Passenger Cruise Days (APCD) for the quarter is 12.7 million, slightly below the estimate of 12.77 million.
- The company projects adjusted EPS for the year to range from $14.35 to $14.65, higher than the estimate of $14.32.
- Fourth-quarter revenue stood at $3.76 billion, matching the estimates and reflecting a 13% year-over-year increase.
- Fourth-quarter adjusted EPS reached $1.63, beating the previous year’s $1.25 and the estimate of $1.50.
- Occupancy for the fourth quarter was 107.6%, surpassing the 105.4% from last year and the estimate of 106.1%.
- Passenger Cruise Days totaled 13.68 million in the fourth quarter, an 8.5% increase year-over-year and above the estimate of 13.54 million.
- Total cruise operating expenses for the fourth quarter were $2.05 billion, coming in below the estimate of $2.18 billion, marking an 8.6% annual increase.
- Fourth-quarter APCD was 12.72 million, showing a 6.3% growth year-over-year but slightly below the forecast of 12.78 million.
- The company’s strategy emphasizes moderate capacity growth, yield growth, and cost discipline, targeting a 23% increase in adjusted earnings for 2025.
- Projected capital expenditures for 2025 are approximately $5 billion, largely due to new ship orders.
- Analyst ratings include 19 buy recommendations, 5 holds, and 2 sell recommendations.
Royal Caribbean Cruises on Smartkarma
Analysts on Smartkarma, like Baptista Research, have been closely monitoring Royal Caribbean Cruises. In their report titled “Royal Caribbean Group: Dealing With Evolving Competitive Dynamics and Potential Challenges! – Major Drivers,” they highlighted the company’s third-quarter 2024 earnings performance. CEO Jason Liberty shared that net yields were up by 7.9% year-over-year, leading to an optimistic full-year guidance with expected yield growth of more than 11% and earnings increasing by over 70%. The report emphasized strong demand across all key itineraries and robust onboard revenue generation, indicating a balanced investment outlook for the company.
Furthermore, Baptista Research, in another insightful report titled “Royal Caribbean Group: Expansion into New Markets and Destinations & Key Factors Driving Our ‘Buy’ Rating! – Financial Forecasts,” commended the company’s robust second-quarter 2024 results. They noted strong demand and positive momentum across Royal Caribbean’s offerings, with the achievement of its ambitious ‘Trifecta’ financial targets well ahead of schedule. This three-year financial plan aimed at delivering impressive triple-digit adjusted EBITDA per APCD, double-digit adjusted EPS, and a solid return on invested capital, all of which have been successfully met, reinforcing Baptista Research‘s favorable outlook on the company.
A look at Royal Caribbean Cruises Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have assessed Royal Caribbean Cruises using their Smart Scores system, with the highest score being for Momentum at 5. This indicates strong positive market momentum for the company. In addition, the Growth factor scored a 4, suggesting a promising outlook for long-term growth potential. However, other factors such as Value, Dividend, and Resilience scored lower at 2 each, indicating some room for improvement in these areas.
Despite the mixed Smart Scores results, Royal Caribbean Cruises Ltd. remains a prominent player in the global cruise industry. The company operates a diverse fleet catering to various segments of the cruise vacation market, ranging from budget to luxury experiences. With a strong momentum score of 5, the company may have substantial opportunities for growth and market performance in the long run, aligning well with its strategic positioning in the cruise vacation industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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