The cruise line operator is almost a five-bagger over the past two years. This doesn't have to be the end of the ride.It's been another great year for the world's most valuable cruise line operator by market cap and enterprise value, despite being just the second-largest cruise line by revenue and passenger volume. After soaring 89% so far in 2024, shares of Royal Caribbean Cruises (RCL -0.95%) hit another all-time high on Tuesday. The stock could wind up doubling this year if the market proves buoyant over ...

Royal Caribbean Cruises Ltd. (RCL) is sailing full steam ahead. On Friday, the stock reached a new 52-week high of $242.20 before closing slightly lower at $241.49.This milestone comes amid stellar third-quarter results and an optimistic outlook for the coming years, fueling an 18.7% surge in the stock price since the earnings announcement. The company's strong third-quarter performance exceeded expectations, driven by high demand, strong pricing, and onboard revenue growth. It achieved a significant financ ...

From Star and Icon of the Seas to all-time favorites, adventures of all kinds set the stage for vacationers to explore the tropics and moreMIAMI, Nov. 19, 2024 /PRNewswire/ -- Vacationers are in for more ways to make memories across Royal Caribbean's latest combination of tropical and Northeast 2026-27 getaways. The lineup of 12 Royal Caribbean ships rounds out a variety of adventures across Florida, Texas, Puerto Rico and the Northeast for every type of family and vacationer to get away any time of year. C ...

Investors interested in stocks from the Leisure and Recreation Services sector have probably already heard of Royal Caribbean (RCL) and Atour Lifestyle Holdings Limited Sponsored ADR (ATAT) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The p ...

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Royal Caribbean (RCL) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question.Royal Caribbean is one of 270 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #11 in the Zacks Sector Rank. The ...

Royal Caribbean has returned to smoother waters, but this is not news to investors.For Royal Caribbean (RCL -2.08%), the skies may have just turned bluer than the water in which its ships sail. The company just released earnings for the third quarter of 2024, revealing higher bookings and increased guidance for the current year.Such improvements have contributed to Royal Caribbean's rising stock price over the last year. The question now is whether the rise in the stock price can continue or whether the shi ...

Royal Caribbean Cruises Ltd RCL reported upbeat earnings for the third quarter. The company reported its results amid an exciting earnings season. Here are some key analyst takeaways. Goldman Sachs On Royal Caribbean Cruises Analyst Lizzie Dove maintained a Buy rating while raising the price target from $220 to $245. Royal Caribbean Cruises' net yields came in below investor expectations and the implied decline in the fourth quarter was an initial disappointment, Dove said in a note. She added that the four ...

Financial Performance - Net Income attributable to Royal Caribbean Cruises Ltd. for Q3 2024 was $1.1 billion, compared to $1.0 billion in Q3 2023[155] - Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. for Q3 2024 was $1.4 billion, compared to $1.1 billion in Q3 2023[155] - Net Income attributable to Royal Caribbean Cruises Ltd. for Q3 2024 was $1,111 million, a 10.1% increase from $1,009 million in Q3 2023[162] - Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. for Q3 2024 was $1,435 million, up 34.6% from $1,066 million in Q3 2023[166] - Net Income attributable to Royal Caribbean Cruises Ltd. for the nine months ended September 30, 2024, was $2,325 million, a 63.7% increase from $1,420 million in the same period in 2023[164] - Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. for the nine months ended September 30, 2024, was $2,794 million, up 86.6% from $1,497 million in the same period in 2023[166] - Net Income attributable to Royal Caribbean Cruises Ltd. for Q3 2024 increased to $1.111 billion from $1.009 billion in Q3 2023[174] - Adjusted EBITDA for Q3 2024 increased to $2.148 billion from $1.728 billion in Q3 2023[174] Revenue Growth - Total revenues increased by $726 million in Q3 2024 compared to Q3 2023, driven by higher capacity, ticket prices, and onboard spending[156] - Total revenues for Q3 2024 increased to $4,886 million, up 17.5% from $4,160 million in Q3 2023[162] - Total revenues for the nine months ended September 30, 2024, were $12,724 million, a 20.4% increase from $10,569 million in the same period in 2023[164] - Total revenues for Q3 2024 increased by $726 million to $4.9 billion compared to $4.2 billion in Q3 2023[184] - Passenger ticket revenues for Q3 2024 increased by $530 million (18.0%) to $3.5 billion, driven by a 10.9% increase in capacity and higher ticket prices[185] - Onboard and other revenues for Q3 2024 increased by $196 million (16.1%) to $1.4 billion, driven by increased capacity and improved pricing[186] - Total revenues for the nine months ended September 30, 2024 increased by $2.2 billion to $12.7 billion compared to $10.6 billion in the same period in 2023[191] - Passenger ticket revenues for the nine months ended September 30, 2024 increased by $1.6 billion (22%) to $8.9 billion, driven by higher ticket prices and an 8.2% increase in capacity[192] - Onboard and other revenues for the nine months ended September 30, 2024 increased by $537 million (16.3%) to $3.8 billion, driven by increased capacity and improved pricing[193] Operating Expenses - Total cruise operating expenses increased by $254 million in Q3 2024 compared to Q3 2023, primarily due to increased capacity[157] - Total Cruise operating expenses for Q3 2024 increased by $254 million to $2.4 billion, primarily due to a 10.9% increase in capacity[187] - Total cruise operating expenses for 2024 increased by $715 million to $6.6 billion, driven by an 8.2% capacity increase ($485 million) and higher drydock, maintenance, and commission expenses ($190 million)[194] - Marketing, selling, and administrative expenses rose by $163 million (13%) to $1.5 billion in 2024, primarily due to increased payroll, benefits, and advertising costs[195] - Depreciation and amortization expenses grew by $103 million (9.5%) to $1.2 billion in 2024, driven by new ship additions[197] Debt and Financing - The company issued $1.25 billion in 6.25% senior notes due 2032 in March 2024, redeeming $1.25 billion in 11.63% Senior Notes Due 2027[157] - The company issued $2.0 billion in 6.00% senior notes due 2033 in August 2024, redeeming $1.0 billion in 9.25% Senior Notes Due 2029 and $1.0 billion in 8.25% Senior Secured Notes Due 2029[159] - The company issued $1.5 billion in 5.63% senior unsecured notes due 2031 in September 2024, redeeming $700 million in 7.25% Senior Notes Due 2030[160] - Interest expense, net of interest capitalized for Q3 2024 increased by $263 million to $603 million, driven by debt extinguishment and inducement expenses[188] - Interest expense increased by $269 million to $1.3 billion in 2024, mainly due to a $337 million loss on debt extinguishment and a $119 million inducement expense[196] Capital Expenditures and Investments - The company took delivery of Silver Ray in May 2024 and Utopia of the Seas in June 2024[158] - The company entered into agreements to acquire the Port of Costa Maya and adjacent land in Mahahual, Mexico for approximately $292 million, expected to close in the first half of 2025[161] - Net cash used in investing activities rose to $2.8 billion in 2024, primarily due to a $1.4 billion increase in capital expenditures for new ship deliveries[201] - Future capital commitments for new ship orders total $5.9 billion, with $619 million already deposited and 39.6% exposed to Euro exchange rate fluctuations[204] - Anticipated full-year capital expenditures for 2024 are approximately $3.4 billion, excluding partner brand orders[205] - Material cash requirements for ship purchase obligations total $4.4 billion, with $3.7 billion in final contractual installments covered by committed financing[206][207] Liquidity and Cash Flow - Net cash provided by operating activities increased by $0.4 billion to $3.8 billion for the nine months ended September 30, 2024, compared to the same period in 2023[200] - The company has $3.9 billion in liquidity, including $0.4 billion in cash and $3.5 billion in undrawn revolving credit facility capacity[213] Passenger and Occupancy Metrics - Passengers Carried in Q3 2024 reached 2,310,220, a 15.5% increase from 1,999,764 in Q3 2023[173] - Occupancy rate for Q3 2024 was 111.0%, up from 109.7% in Q3 2023[173] - Passengers Carried for the nine months ended September 30, 2024, reached 6,404,844, a 12.2% increase from 5,706,843 in the same period in 2023[173] - Occupancy rate for the nine months ended September 30, 2024, was 108.8%, up from 105.7% in the same period in 2023[173]

Royal Caribbean Cruises Ltd. RCL shares are trading higher on Tuesday. The company reported mixed third-quarter results today.Revenue grew 17.5% year-over-year to $4.89 billion, missing the consensus of $4.90 billion, while adjusted EPS of $5.20 was above the consensus of $5.03.The company sees fourth-quarter net yields increase 5.1% to 5.6% in constant currency. RCL sees adjusted EPS of $1.40 – $1.45 against the estimate of $2.28.Goldman Sachs analyst Lizzie Dove writes that looking ahead, the primary disa ...

Financial Data and Key Metrics Changes - The company increased its full-year yield guidance to over 11% and earnings by more than 70% due to better-than-expected third-quarter results and an improved outlook for the fourth quarter [8][14] - Adjusted earnings per share for the third quarter reached $5.20, exceeding guidance by $0.25 per share [31] - Adjusted EBITDA was $2.1 billion, representing a 24% year-over-year growth, with an adjusted EBITDA margin of 44%, which is 240 basis points higher than last year [32] Business Line Data and Key Metrics Changes - Net yields increased by 7.9% year-over-year, driven by stronger average passenger daily rates (APDs) across all key itineraries, particularly in Alaska and Europe [32] - Net cruise costs, excluding fuel, increased by 4% in constant currency, with favorable timing of expenses offsetting the negative impact of stock compensation [32] Market Data and Key Metrics Changes - The company reported strong demand for its experiences, with bookings outpacing 2024 levels during the third quarter and into October [15] - The addressable market for cruises is growing, with a significant increase in new customers, particularly from younger demographics [21] Company Strategy and Development Direction - The company aims to capture a greater share of the $1.9 trillion vacation market through moderate capacity growth, moderate yield growth, and strong cost control [11] - The introduction of new private destinations, such as Perfect Day Mexico and Royal Beach Club, is expected to enhance customer experiences and drive demand [9][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong demand for cruise experiences, supported by favorable macroeconomic conditions such as wage growth and low unemployment [18] - The company anticipates earnings in 2025 to start with a $14 handle, driven by moderate yield growth and effective cost management [43] Other Important Information - The company achieved a fully unsecured capital structure, allowing for further growth ambitions and capital allocation [44][45] - The company is diversifying its fuel sources and has made significant progress in sustainability initiatives, including a double-digit reduction in carbon intensity compared to 2019 [29][30] Q&A Session Summary Question: Can you discuss pricing and cumulative comparisons to 2019? - Management indicated that fourth-quarter pricing is up about 25% compared to 2019, with strong demand and customer willingness to pay more driving this growth [48][49] Question: What are the capital investment expectations for Perfect Day Mexico? - The company acquired the port for $292 million and is focused on ensuring significant returns associated with private destinations while enhancing guest experiences [53][54] Question: What are the pillars for achieving the $14 earnings target in 2025? - Management emphasized the importance of moderate yield growth, effective cost management, and benefits from a stronger balance sheet in achieving this target [56][57] Question: How do you view bookings trends and marketing strategies? - Management noted that elevated demand patterns are driving bookings, and they plan to continue investing in marketing to sustain this demand [72] Question: What impact do you expect from the hurricane on yields? - Management stated that there has been minimal impact from the hurricane on fourth-quarter yields, and they do not foresee any carry-through effects into 2025 [74] Question: Can you elaborate on the Gulf Coast market opportunity? - Management highlighted that Texas has a similar cruise market size to Florida but with half the penetration, presenting a significant growth opportunity [76][78]