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

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.)