Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com - Royal Caribbean Cruises Ltd (NYSE:RCL) is showing sustained price growth in July according to Bernstein’s cruise price tracker, potentially indicating strong second-quarter results ahead of the company’s July 29 earnings report. According to InvestingPro data, the stock is currently trading near its 52-week high of $336.62, with an impressive year-to-date return of 45.5%. InvestingPro analysis suggests the stock is currently trading above its Fair Value.
The tracker shows Royal Caribbean’s prices increased 6.9% year-over-year in July, continuing the high single-digit growth observed in May and June. Like-for-like pricing also remained robust, up 4% in July, representing only a slight slowdown from the previous two months and a strong recovery from April’s small declines during Liberation Day. This pricing strength aligns with the company’s solid financial performance, as InvestingPro data shows revenue growth of 13.7% and a healthy gross profit margin of 49.6%.
European pricing emerged as a particular strength, rising "well into the double digits" year-over-year, while Caribbean and Bahamas markets maintained steady low to mid-single-digit price growth. The Celebrity brand showed especially impressive performance with 12.7% growth (10.8% excluding the new Celebrity Xcel ship), likely reflecting strong European demand.
Bernstein notes the data suggests Royal Caribbean could beat yield expectations in its upcoming earnings report, though the research firm cautions that the recent stock price increases may have already priced in much of this positive outlook. Royal Caribbean shares have risen 22% since Carnival Corporation (LON:CCL) reported its second-quarter results on June 23.
Despite limited short-term upside potential, Bernstein maintains its long-term preference for Royal Caribbean as "the best way to play a strong structural outlook for cruise," citing the company’s potential for high-teens EPS growth, mid-teens multiple, and industry-leading margin and return on invested capital profile. With a market capitalization of $90.6 billion and analyst consensus showing a strong buy recommendation, the company’s outlook remains positive. For deeper insights into RCL’s valuation and growth prospects, including 15+ additional ProTips and comprehensive financial analysis, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Royal Caribbean Cruises has seen a series of positive developments. Stifel raised its price target for the company to $400 from $310, citing strong forward demand and pricing trends. The firm also highlighted potential upside from Royal Caribbean’s land-based projects. Bernstein followed suit by increasing its price target to $360 from $290, noting an improvement in the company’s return on invested capital and operating margins since the pandemic.
In leadership changes, Richard Fain will retire as Chairman in Q4 2025, with current President and CEO Jason Liberty set to take over. The company’s Board of Directors also appointed John Brock as Independent (LON:IOG) Lead Director. Meanwhile, Bernstein reiterated an Outperform rating, emphasizing Royal Caribbean’s robust pricing power and customer demographics. Stifel expressed confidence in the company’s future performance, noting strong demand and potential upside in guidance for the second half of 2025.
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