Earnings Results: Royal Caribbean stock cruises to 9-month high as bookings top pre-pandemic levels

Shares of Royal Caribbean Group

rallied to a nine-month high Tuesday, after the cruise operator reported a fourth-quarter loss that narrowed more than forecast, as bookings have “significantly” exceeded pre-pandemic levels.

“Leisure travel strength continues as consumer spend is shifting towards experiences, with cruising remaining an attractive value proposition,” said Chief Executive Jason Liberty.

The stock climbed 7.1% to $74.01 on Tuesday, the highest closing price since May 4, 2022.

Net losses for the latest quarter narrowed to $500.2 million, or $1.96 a share, from $1.36 billion, or $5.33 a share, in the same period a year ago. Excluding nonrecurring items, the adjusted per-share loss of $1.12 beat the FactSet loss consensus of $1.33.

Revenue jumped 165% to $2.604 billion, just shy of the FactSet consensus of $2.608 billion. Load factors were in line with guidance at 95%, with Caribbean sales reaching 100% and holiday sailings close to 110%, while revenue per passenger cruise increased 3.5%.

Booking volumes in the fourth-quarter were “significantly higher” than the same period of 2019, and momentum has continued into early 2023.

“We are experiencing a record-breaking WAVE season, resulting in a booked position approaching previous record highs and at higher prices,” CEO Liberty said. (Wave season refers to peak cruise-promotion season during the first quarter.)

For 2023, the company expects adjusted earnings per share of $3.00 to $3.60, surrounding the FactSet consensus of $3.33. Net yields are expected to increase 2.5% to 4.5% from 2019 levels.

The stock has soared 49.7% to start 2023, and has rocketed 136.6% since closing at a more than two-year low of $31.28 in July 2022. In comparison, shares of rival cruise operators Carnival Corp.

have rallied 51.2% year to date and Norwegian Cruise Line Holdings Ltd.

have hiked up 42.8%, while the S&P 500

has tacked on 8.5%.

What's your reaction?

In Love
Not Sure

You may also like

More in:News

Leave a reply

Your email address will not be published. Required fields are marked *