Royal Caribbean shares rise as Q4 earnings top estimates

Published 28/01/2025, 13:06
© Reuters

Investing.com -- Royal Caribbean Group reported better-than-expected fourth quarter earnings and provided a robust outlook for Q1 and 2025, sending shares up 2.2% in early trading Thursday.

The cruise operator posted adjusted earnings per share of $1.63 for Q4, beating analyst estimates of $1.49. Revenue came in at $3.76 billion, in line with expectations.

Royal Caribbean (NYSE:RCL) said the strong results were driven by higher pricing on close-in demand and continued strength in onboard revenue. Load factor for the quarter reached 108%.

Looking ahead, the company forecast full-year 2025 adjusted EPS of $14.35 to $14.65, compared to the consensus estimate of $14.44. For Q1 2025, Royal Caribbean expects adjusted EPS of $2.43 to $2.53, above analyst projections of $2.36.

"2024 was exceptional, thanks to our incredible team's flawless execution, which drove elevated demand across our leading brands," said Jason Liberty, president and CEO of Royal Caribbean Group. "2025 is shaping up to be another great year, with expected adjusted earnings growth of 23%."

The company said bookings have accelerated recently, resulting in the best five booking weeks in its history. Booked load factors for 2025 are in line with prior years at higher rates.

Royal Caribbean also announced it is expanding into river cruises with the launch of Celebrity River Cruises, set to begin sailing in 2027.

The stock's 2.2% gain reflects investor optimism around the strong Q4 performance and positive outlook.

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