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Royal Caribbean Q1 Earnings Surpass Estimates, Revenues Miss
RCLRoyal Caribbean Cruises .(RCL) ZACKS·2025-04-29 18:05

Core Viewpoint - Royal Caribbean Cruises Ltd. (RCL) reported mixed first-quarter 2025 results, with adjusted earnings exceeding expectations while revenues fell short, although both metrics showed year-over-year growth [1][3]. Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were 2.71,surpassingtheZacksConsensusEstimateof2.71, surpassing the Zacks Consensus Estimate of 2.53 by 7.1%, compared to 1.77intheprior−yearquarter[3].−Quarterlyrevenuesreached1.77 in the prior-year quarter [3]. - Quarterly revenues reached 4 billion, missing the consensus mark by 0.2%, but up 7.3% from 3.72billionyear−over−year[3].−Passengerticketrevenuesincreasedto3.72 billion year-over-year [3]. - Passenger ticket revenues increased to 2.74 billion from 2.54billionintheprior−yearquarter,aligningwithestimates[4].−Onboardandotherrevenuesroseto2.54 billion in the prior-year quarter, aligning with estimates [4]. - Onboard and other revenues rose to 1.26 billion from 1.19billionyear−over−year,exceedingestimates[4].−Totalcruiseoperatingexpenseswere1.19 billion year-over-year, exceeding estimates [4]. - Total cruise operating expenses were 2.08 billion, up 1.1% year-over-year, below estimates [4]. Cost and Yield Metrics - Net yields increased by 5.6% on a constant currency basis and 4.7% on a reported basis compared to Q1 2024 [5]. - Net cruise costs, excluding fuel, per Available Passenger Cruise Day (APCD) decreased by 0.1% on a constant currency basis and 0.3% on a reported basis year-over-year [5]. Balance Sheet and Cash Flow - As of March 31, 2025, cash and cash equivalents were 386million,slightlydownfrom386 million, slightly down from 388 million at the end of 2024 [6]. - Long-term debt decreased to 17.99billionfrom17.99 billion from 18.47 billion at the end of 2024, with the current portion of long-term debt also declining [6]. Booking Trends - The company experienced strong booking trends during the WAVE season, with April bookings surpassing the same period last year [7]. - Customer deposits as of March 31, 2025, were 6.33billion,upfrom6.33 billion, up from 5.5 billion in the prior-year period [8]. Management Outlook - Management expressed optimism regarding ongoing consumer enthusiasm for new offerings, which is expected to drive yield growth throughout 2025 [9]. - For Q2 2025, the company anticipates adjusted EPS between 4and4 and 4.10, with net yields projected to increase by 4.4-4.9% on a reported basis [10][11]. - For the full year 2025, adjusted EPS is expected to be between 14.55and14.55 and 15.55, an increase from previous expectations [12].