Royal Caribbean Cruises Q1 Profit Beats Street, Sees Q2 Above Market; Lifts FY25 View; Stock Up

(RTTNews) - Royal Caribbean Cruises Ltd. (RCL), while reporting higher first-quarter earnings above market estimates, on Tuesday issued second-quarter earnings view above the Street. The company also raised its fiscal 2025 earnings forecast.

In pre-market activity on the NYSE, Royal Caribbean shares were gaining around 2.6 percent to trade at $222.00.

For the second quarter, the company projects adjusted earnings per share in the range of $4.00 to $4.10.

The Wall Street analysts on average expect the company to report earnings of $3.94 per share. Analysts' estimates typically exclude special items.

For fiscal 2025, Royal Caribbean now projects adjusted earnings per share to grow around 28% year-over-year to $14.55 to $15.55. The company previously expected adjusted earnings in the range of $14.35 to $14.65 per share. Analysts estimate earnings of $14.93 per share for the year.

The increase in earnings expectations is driven mainly by the better than expected revenue performance in the first quarter.

In the first quarter, Royal Caribbean's net income was $730 million or $2.70 per share, higher than prior year's $360 million or $1.35 per share.

Adjusted earnings were $744 million or $2.71 per share for the period, compared to $478 million or $1.77 per share for the same period in the prior year. Analysts had expected the company to earn $2.53 per share.

The company said the earnings were better than its guidance due to stronger than expected pricing on close-in demand and lower costs mainly due to timing.

The company's revenue for the period rose 7.3 percent to $3.999 billion from $3.728 billion last year. The Street was looking for revenues of $4.02 billion.

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