Royal Caribbean Raises Full-Year EPS Forecast Amid Strong Demand
Royal Caribbean Cruises Ltd (RCL) raised its full-year adjusted earnings per share guidance to a range of $17.73–$17.87, citing strong close-in demand and cost efficiencies. The company reported second-quarter adjusted EPS of $4.21, exceeding estimates but down 4% year-over-year. Revenue rose 6% to $4.8 billion, slightly below expectations. Despite a decline in gross margin yields by 5.6%, the firm noted improved net cruise costs and load factors at 110%. Jefferies highlighted that while Q2 results were positive, the full-year guidance increase—driven by fuel cost savings and other efficiencies—is more significant for investors. The company also projected third-quarter adjusted EPS of $6.26–$6.36 in line with estimates and expects 8% revenue growth year-over-year with flat net yields as-reported. Jefferies noted a modest near-term impact on bookings due to lower full-year yield guidance, suggesting continued monitoring is warranted.
Tickers: $RCL