What's Going On With Royal Caribbean Cruises Stock Thursday?

Royal Caribbean Cruises Ltd RCL reported fourth-quarter FY23 sales growth of 27.8% year-on-year to $3.33 billion, marginally missing the consensus estimate of $3.36 billion.

Adjusted EPS of $1.25 beat the consensus estimate of $1.13. The stock gained premarket after the mixed results, only to shed gains in the trading session.

Passenger ticket revenues rose 34.3% Y/Y to $2.29 billion versus last year. Total cruise operating expenses were $1.89 billion versus $1.78 billion a year ago. 

Gross margin yields increased 30.9%, as reported, and net yields increased 17.9% in constant currency versus the fourth quarter of 2019.

Operating income for the quarter jumped to $570 million, with an operating margin of 17.1%.

The occupancy rate in the quarter was 105.4% versus 94.9% last year.

Royal Caribbean held $497 million in cash and equivalents as of December 31, 2023.

As of December 31, 2023, the group’s customer deposit balance was $5.3 billion.  

“2023 was an exceptional year, propelled by unmatched demand for our brands from new and loyal guests,” said Jason Liberty, president and CEO, Royal Caribbean Group. 

“With the wind in our sails and record-breaking bookings, 2024 is poised to be another robust year, and we expect to achieve two of our Trifecta goals one year early,” added Liberty.

Outlook: Royal Caribbean expects first-quarter net yields to increase 15.20% – 15.70% in constant currency vs. 2023, and first-quarter adjusted EPS of $1.10 – $1.20 versus $0.86 consensus. 

It expects 2024 net yields to increase 5.25% – 7.25% in constant currency vs. 2023, and 2024 adjusted EPS of $9.50 – $9.70 versus the $9.19 consensus.

Price Action: RCL shares are dealing lower by 0.85% at $126.42 on the last check Thursday.

Photo by postcardtrip via Pixabay