Royal Caribbean Cruises (NYSE:RCL) Shares Gap Up on Earnings Beat

Royal Caribbean Cruises Ltd. (NYSE:RCL)’s stock price gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $280.60, but opened at $300.00. Royal Caribbean Cruises shares last traded at $298.6450, with a volume of 1,036,665 shares traded.

The company reported $6.57 EPS for the quarter, beating analysts’ consensus estimates of $6.38 by $0.19. Royal Caribbean Cruises had a net margin of 23.54% and a return on equity of 43.33%. The firm had revenue of $5.59 billion during the quarter, compared to analysts’ expectations of $5.61 billion. During the same quarter last year, the company posted $5.75 earnings per share. The company’s revenue for the quarter was up 8.8% compared to the same quarter last year.

Royal Caribbean Cruises Dividend Announcement

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

Key Royal Caribbean Cruises News

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

Analyst Upgrades and Downgrades

A number of analysts have issued reports on RCL shares. Morgan Stanley boosted their price objective on shares of Royal Caribbean Cruises from $280.00 to $300.00 and gave the company an “equal weight” rating in a report on Thursday, July 30th. Bank of America raised Royal Caribbean Cruises from a “neutral” rating to a “buy” rating and set a $330.00 price target on the stock in a research report on Monday, September 28th. JPMorgan Chase & Co. raised their price objective on Royal Caribbean Cruises from $345.00 to $394.00 and gave the stock an “overweight” rating in a research note on Thursday, September 24th. Truist Financial raised their price objective on Royal Caribbean Cruises from $297.00 to $298.00 and gave the stock a “hold” rating in a research note on Thursday, September 24th. Finally, Susquehanna dropped their price objective on Royal Caribbean Cruises from $372.00 to $355.00 and set a “positive” rating for the company in a report on Tuesday, October 20th. Twenty equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $350.50.

Insider Transactions at Royal Caribbean Cruises

In other Royal Caribbean Cruises news, CEO Michael Bayley sold 12,811 shares of the company’s stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $315.99, for a total value of $4,048,147.89. Following the completion of the transaction, the chief executive officer owned 45,297 shares of the company’s stock, valued at $14,313,399.03. This represents a 22.05% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 6.44% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Royal Caribbean Cruises

Several institutional investors and hedge funds have recently made changes to their positions in RCL. BlackRock Inc. bought a new position in Royal Caribbean Cruises during the 2nd quarter worth approximately $6,549,422,000. State Street Corp lifted its position in shares of Royal Caribbean Cruises by 2.6% in the 2nd quarter. State Street Corp now owns 10,689,134 shares of the company’s stock worth $3,409,971,000 after purchasing an additional 270,930 shares during the period. Primecap Management Co. CA acquired a new position in shares of Royal Caribbean Cruises in the 2nd quarter worth approximately $669,804,000. Dimensional Fund Advisors LP lifted its position in shares of Royal Caribbean Cruises by 2.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,957,044 shares of the company’s stock worth $538,393,000 after purchasing an additional 38,748 shares during the period. Finally, Jupiter Topco LLC acquired a new position in shares of Royal Caribbean Cruises in the 2nd quarter worth approximately $597,350,000. Institutional investors and hedge funds own 87.53% of the company’s stock.

Royal Caribbean Cruises Stock Performance

The stock’s 50 day moving average price is $272.01 and its 200 day moving average price is $286.88. The company has a debt-to-equity ratio of 2.03, a quick ratio of 0.19 and a current ratio of 0.21. The company has a market capitalization of $80.20 billion, a P/E ratio of 18.51, a price-to-earnings-growth ratio of 0.97 and a beta of 1.82.

About Royal Caribbean Cruises

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.