Royal Caribbean Q4 adjusted EPS meets expectations on high occupancy rates, cost control

Reuters
01/29
Royal Caribbean Q4 adjusted EPS meets expectations on high occupancy rates, cost control

Overview

  • Cruise operator's Q4 adjusted EPS meets analyst expectations

  • Net income for Q4 rose significantly compared to prior year

  • Company expands vacation portfolio with new Discovery Class ships and river cruise fleet

Outlook

  • Royal Caribbean expects 2026 adjusted EPS between $17.70 and $18.10

  • Company anticipates double-digit revenue and EPS growth in 2026

  • Royal Caribbean plans to expand vacation portfolio with new Discovery Class ships

Result Drivers

  • STRONG DEMAND - Co reported strong demand and high occupancy rates, with a load factor of 108% in Q4

  • COST CONTROL - Gross Cruise Costs per APCD decreased 4.5% as-reported, contributing to improved margins

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Passenger Ticket Revenues

$2.94 bln

Q4 Adjusted EPS

Meet

$2.80

$2.80 (19 Analysts)

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 $328.00, about 12.5% above its January 28 closing price of $291.60

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nPn2h82kva

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)

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