Royal Caribbean Shares Surge on Results, Outlook as Cruise Demand Jumps

By
Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published July 27, 2023
Royal Caribbean

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Key Takeaways

  • Royal Caribbean beat profit and sales estimates, and raised its outlook on higher prices and onboard sales.
  • Booking volumes were above 2019, and at record pricing levels.
  • The company estimates 2023 EPS will be well above its previous forecast.

Shares of Royal Caribbean Group (RCL) jumped 8.7% on Thursday after the cruise line operator posted better-than-expected results and raised its outlook on an increase in pricing for short-term bookings and higher onboard revenue.

Royal Caribbean reported fiscal 2023 second quarter earnings per share (EPS) of $1.82, and revenue skyrocketed 61% to $3.52 billion. Both were above forecasts. 

The company noted that booking volume remained significantly greater than at the same time in 2019 before the COVID-19 lockdowns devastated the industry, and they were at record pricing levels.

CEO Jason Liberty said “demand for cruising and our brands is exceptionally strong,” adding that the company has seen “another step change in booking volumes and pricing.”

Royal Caribbean now anticipates full year EPS of $6.00 to $6.20, up from the previous $4.40 to $4.80, and more than analysts' estimates.

Royal Caribbean shares soared to their highest level since February 2020. Shares of industry rivals were up as well.

RCL

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  1. Royal Caribbean Group. "ROYAL CARIBBEAN GROUP REPORTS SECOND QUARTER EARNINGS AND INCREASES FULL YEAR GUIDANCE ON CONTINUED REVENUE ACCELERATION."

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