Cruise operator Royal Caribbean beats Q3 adjusted EPS expectations, lifts FY forecast

Reuters
Oct 28
Cruise operator Royal Caribbean beats Q3 adjusted EPS expectations, lifts FY forecast

Overview

  • Royal Caribbean Q3 adjusted EPS beats analyst expectations, driven by strong demand and lower costs

  • Company raises full-year 2025 adjusted EPS guidance to $15.58-$15.63, up 32% yr/yr

Outlook

  • Royal Caribbean raises 2025 Adjusted EPS guidance to $15.58-$15.63

  • Company says 2026 bookings have come in at rates well above the prior year

  • Company expects 2026 EPS to have a $17 handle

  • Royal Caribbean plans to open Royal Beach Club Santorini in 2026

Result Drivers

  • HIGHER DEMAND - Strong close-in demand exceeded expectations, contributing to better-than-expected Q3 results

  • COST MANAGEMENT - Lower-than-expected costs helped improve Q3 financial performance

  • NEW SHIPS - Contribution of new ships with higher load factors supported increased occupancy and yields

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Passenger Ticket Revenues

$3.63 bln

Q3 Adjusted EPS

Beat

$5.75

$5.67 (18 Analysts)

Q3 EPS

$5.74

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

  • Wall Street's median 12-month price target for Royal Caribbean Cruises Ltd is $360.50, about 11.2% above its October 27 closing price of $320.26

  • The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nPn6Z75ySa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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