Royal Caribbean Stock Rises As Company Sees Smooth Sailing Ahead: What's Going On?

Royal Caribbean Cruises Ltd RCL shares are trading higher Tuesday after the company reported fourth-quarter financial results and provided an upbeat outlook.

What Happened: Royal Caribbean turned in fourth-quarter revenue of $2.6 billion, which missed average analyst estimates of $2.61 billion, according to Benzinga Pro. The cruise company reported a quarterly net loss of $1.12 per share, which beat estimates for a loss of $1.34 per share.

Total revenues per passenger cruise day were up 3.5% year-over-year. Load Factors were in line with guidance at 95%.

"2022 was a pivotal year as we successfully returned our business to full operations and delivered memorable vacation experiences to 6 million guests," said  Jason Liberty, president and CEO of Royal Caribbean.

"We also returned to positive Adjusted EBITDA and Operating Cash Flow by consistently growing revenue and controlling costs," Liberty added.

Royal Caribbean said it anticipates a first-quarter net loss between 65 cents and 85 cents per share. Full-year 2023 adjusted earnings are expected to be in a range of $3 to $3.60 per share. 

The company noted that it's experiencing a record-breaking WAVE season, driven by strong demand. Royal Caribbean said the seven biggest booking weeks in company history occurred since the last earnings call in November 2022.

On the conference call following the report, the company said it expects about 80% of capacity to operate from North America during the first quarter, mostly sailing to the Caribbean.

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RCL Price Action: Royal Caribbean has a 52-week high of $90.55 and a 52-week low of $31.09.

The stock was up 3.81% at $71.68 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Royal Caribbean.