Royal Caribbean Cruises' Q1 Benefits From Strong Demand, Stock Surges

Zinger Key Points

Royal Caribbean Cruises Ltd RCL shares are trading higher in premarket on Tuesday after the first-quarter fiscal 2025 earnings.

The cruise operator reported first-quarter sales growth of 7.2% year-on-year to $4 billion, marginally missing the analyst consensus estimate of $4.01 billion.

Passenger ticket revenues rose 7.9% Y/Y to $2.74 billion compared to last year. Total cruise operating expenses were $2.07 billion versus $2.05 billion a year ago. 

Gross Cruise Costs per Available Passenger Cruise Days (APCD) decreased 1.1%. Gross margin yields increased 13.9% as-reported, and net yields increased 4.7% in constant currency.

Operating income for the quarter jumped 26% to $945 million, with an operating margin of 23.6%. The occupancy rate in the quarter was 108.8% versus 107% last year.

Also Read: Marriott Bets $355M On Trendy CitizenM Hotels To Woo Modern Travelers

Adjusted EBITDA for the quarter was $1.4 billion, with a margin of 35.1%. Adjusted EPS of $2.71 beat the consensus estimate of $2.54.

As of March 31, the group's customer deposit balance was $6.33 billion. Royal Caribbean held $386 million in cash and equivalents as of March-end.

Royal Caribbean CEO Jason Liberty said the company is navigating “the complexities of the current macroeconomic landscape” while also optimizing revenue and managing costs.

Outlook: Royal Caribbean expects FY25 net yields growth of 2.5%—4.5% in constant currency. RCL raises its FY25 adjusted EPS outlook from $14.35 – $14.65 to $14.55 – $16.55 versus an estimate of $14.94.

The company expects second-quarter adjusted EPS of $4.00 – $4.10, with an estimate of $3.96. Net yields for the first quarter are expected to increase 4.4% to 4.9% in constant currency.

Price Action: RCL shares traded higher by 4.48% at $226.00 in premarket at last check Tuesday.

Read Next:

Image: Shutterstock

RCL Logo
RCLRoyal Caribbean Group
$257.251.10%

Stock Score Locked: Want to See it?

Benzinga Rankings give you vital metrics on any stock – anytime.

Reveal Full Score
Edge Rankings
Momentum
92.17
Growth
79.40
Quality
Not Available
Value
49.40
Price Trend
Short
Medium
Long
Market News and Data brought to you by Benzinga APIs

Comments
Loading...