Shares of Royal Caribbean Cruises (RCL) jumped 5.08% in pre-market trading on Tuesday after the cruise operator reported better-than-expected first-quarter earnings and raised its full-year outlook, signaling strong demand for cruise vacations.
The company reported adjusted earnings per share of $2.71 for the first quarter, significantly beating analyst estimates of $2.54. This represents a 53% increase from $1.77 per share in the same period last year. Total revenues for the quarter rose to $4.0 billion, up 7.3% year-over-year.
In a move that further boosted investor confidence, Royal Caribbean raised its full-year 2025 adjusted earnings per share guidance to a range of $14.55 to $15.55, up from its previous forecast of $14.35 to $14.65. The company attributed this increase to better-than-expected revenue performance in the first quarter and the benefits of favorable currency exchange rates and lower fuel costs for the remainder of the year.
"Our strong first quarter results are a testament to the enduring appeal and attractive value proposition of our leading brands and the incredible vacations they deliver," said Jason Liberty, president and CEO of Royal Caribbean Group. He added that the company saw record bookings during the peak WAVE season, with continued strength in close-in bookings and higher pricing across key products.
The positive results and outlook reflect the cruise industry's ongoing recovery and Royal Caribbean's ability to capitalize on strong travel demand. The company reported a load factor of 109% for the first quarter, indicating high occupancy rates on its ships. Additionally, net yields increased by 4.7% as-reported (5.6% in constant currency) compared to the first quarter of 2024, driven by higher pricing and onboard spending.
As Royal Caribbean continues to navigate the complexities of the current macroeconomic landscape, the company remains focused on delivering exceptional vacation experiences, optimizing revenue, and managing costs while investing in future growth initiatives. With its strong performance and positive outlook, Royal Caribbean is well-positioned to capture a greater share of the growing global vacation market.
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