Royal Caribbean Cruises (NYSE:RCL) Announces Quarterly Earnings Results

Royal Caribbean Cruises (NYSE:RCL) released its quarterly earnings results on Tuesday. The company reported $6.57 EPS for the quarter, topping analysts’ consensus estimates of $6.38 by $0.19, FiscalAI reports. Royal Caribbean Cruises had a net margin of 23.54% and a return on equity of 43.33%. The business had revenue of $5.59 billion during the quarter, compared to analysts’ expectations of $5.61 billion. During the same quarter in the previous year, the company earned $5.75 EPS. The business’s quarterly revenue was up 8.8% compared to the same quarter last year.

Royal Caribbean Cruises Trading Up 6.6%

RCL stock traded up $18.59 on Tuesday, hitting $299.19. 1,036,665 shares of the company were exchanged, compared to its average volume of 2,523,396. The business’s fifty day moving average is $272.01 and its two-hundred day moving average is $286.88. The company has a debt-to-equity ratio of 2.03, a current ratio of 0.21 and a quick ratio of 0.19. Royal Caribbean Cruises has a twelve month low of $222.22 and a twelve month high of $356.39. The stock has a market capitalization of $80.02 billion, a price-to-earnings ratio of 18.50, a price-to-earnings-growth ratio of 0.97 and a beta of 1.82.

Royal Caribbean Cruises Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 8th. Stockholders of record on Thursday, September 17th were given a $1.50 dividend. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend was Thursday, September 17th. Royal Caribbean Cruises’s payout ratio is currently 37.08%.

Key Stories Impacting Royal Caribbean Cruises

Here are the key news stories impacting Royal Caribbean Cruises this week:

• Positive Sentiment: Adjusted earnings beat expectations: Royal Caribbean reported third-quarter adjusted EPS of $6.57, above the $6.38 analyst consensus and up from $5.75 a year earlier. GAAP EPS was $6.45, with net profit rising to $1.73 billion from $1.58 billion. This marked the company’s sixth consecutive quarterly EPS beat. Royal Caribbean Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Full-year guidance was raised: Management now expects 2026 adjusted EPS of $17.85 to $17.95, reflecting better-than-expected third-quarter performance. Strong close-in bookings and demand, along with lower costs due partly to timing, supported the improvement. Royal Caribbean Reports Third Quarter Results and Raises Guidance
• Positive Sentiment: Revenue continued to grow: Third-quarter revenue increased 8.8% year over year to $5.59 billion, indicating continued strength in cruise demand and pricing, despite being slightly below the $5.61 billion consensus estimate. Royal Caribbean Q3 Sales in Line With Estimates
• Neutral Sentiment: Fuel costs remain a risk: Higher-than-anticipated fuel expenses partly offset the earnings benefit from strong demand and cost timing. Management expects fourth-quarter adjusted EPS of $3.48 to $3.58, giving investors a near-term profitability benchmark. Royal Caribbean Earnings Are Good News for Cruise Fuel Fears

Insider Activity

In other Royal Caribbean Cruises news, CEO Michael Bayley sold 12,811 shares of the stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $315.99, for a total transaction of $4,048,147.89. Following the transaction, the chief executive officer owned 45,297 shares of the company’s stock, valued at $14,313,399.03. This trade represents a 22.05% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Company insiders own 6.44% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on RCL. Northcoast Research decreased their target price on Royal Caribbean Cruises from $368.00 to $335.00 and set a “buy” rating on the stock in a report on Thursday, September 24th. Stifel Nicolaus raised their target price on shares of Royal Caribbean Cruises from $410.00 to $415.00 and gave the company a “buy” rating in a research note on Wednesday, July 29th. Freedom Capital downgraded shares of Royal Caribbean Cruises from a “strong-buy” rating to a “hold” rating in a report on Wednesday, July 29th. Jefferies Financial Group upgraded Royal Caribbean Cruises from a “hold” rating to a “buy” rating and increased their target price for the company from $305.00 to $330.00 in a research report on Thursday, October 8th. Finally, Truist Financial upped their target price on Royal Caribbean Cruises from $297.00 to $298.00 and gave the company a “hold” rating in a report on Thursday, September 24th. Twenty analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $350.50.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises Ltd., doing business as Royal Caribbean Group (NYSE: RCL), is a global cruise company that operates vacation cruises and related travel experiences. Its fleet visits destinations across the Caribbean, Europe, Alaska, Asia, Australia, and other regions, with itineraries that typically include onboard entertainment, dining, accommodations, recreational activities, and shore excursions.

The company’s principal brands include Royal Caribbean International, Celebrity Cruises, and Silversea Cruises.