Royal Caribbean Tops Q3 Earnings Estimates, Raises Full-Year Guidance

Dow Jones19:53

Surging oil prices have weighed on cruise-line operators this year, but the industry’s biggest player by total market capitalization has managed to ride the wave.

Royal Caribbean beat analysts’ consensus third-quarter earnings target and raised its full-year guidance on Tuesday, signaling to investors that the run-up in fuel costs isn’t having too much of an impact on its business.

Travel demand has held up this year, even though the Iran war has driven up benchmark oil prices. Bookings for 2027 are pacing ahead of historical levels, Royal Caribbean CEO Jason Liberty said.

The Miami-based company posted an adjusted profit of $6.57 a share, as revenue rose 9% from a year ago to $5.6 billion. Analysts polled by FactSet expected earnings of $6.38 a share on revenue of $5.6 billion.

Royal Caribbean also raised its full-year earnings guidance to between $17.85 and $17.95 a share. Wall Street was forecasting $17.79 a share.

Shares jumped 4.6% to $293.50 ahead of Tuesday’s opening bell.

They were up 0.6% for the year through Monday’s close. Rivals Carnival and Norwegian were down 12% and 32%, respectively, over the same period.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment