- Third Quarter Forecast: Adjusted EPS expected between $4.90 and $5.00, beating the estimate of $4.75.
- Available Passenger Cruise Days (APCD) Prediction: 13.4 million, surpassing the estimate of 13.17 million.
- Quarter 2 Results Highlights:
- Revenue: $4.11 billion, a 17% increase year-over-year, exceeding the estimate of $4.05 billion.
- Adjusted EPS: $3.21 compared to $1.82 year-over-year, beating the estimate of $2.75.
- Occupancy: 108.2%, up from 105% year-over-year, slightly below the estimate of 108.9%.
- Passenger Cruise Days: 13.23 million, a 7.6% increase year-over-year, short of the estimate of 13.32 million.
- Total Cruise Operating Expenses: $2.15 billion, a 10% increase year-over-year, slightly above the estimate of $2.12 billion.
- APCD: 12.23 million, a 4.5% increase year-over-year, matching the estimate of 12.23 million.
- Full Year 2024 Guidance:
- Adjusted EPS Growth: Expected to grow 68% year-over-year, reaching $11.35 to $11.45.
- Capital Expenditures: Expected to be approximately $3.5 billion, mainly for new ship orders.
- Analyst Ratings: 18 buys, 4 holds, and 2 sells.
Royal Caribbean Cruises on Smartkarma
Analyst coverage on Smartkarma regarding Royal Caribbean Cruises is highly positive and optimistic. Baptista Research emphasizes the company’s focus on millennial customers and new cruise experiences as major drivers of success in their report titled “Royal Caribbean Group: Focus on Millennial Customers and New Cruise Experiences! – Major Drivers.” The report highlights the impressive strides made by Royal Caribbean in reshaping its business in the first quarter of 2024, showing robust performance and strong consumer demand for vacation experiences. Results exceeded expectations, with the company’s brands stronger than ever and a consistent acceleration in the demand for vacation experiences.
Furthermore, in another report by Baptista Research titled “Royal Caribbean Cruises Ltd.: How They’re Sailing Towards Improved Profitability With These Strategies! – Major Drivers,” the focus is on Royal Caribbean’s optimistic financial position in Q4 and full-year 2023. The report lauds the company’s success with the launch of the innovative product, Icon of the Seas, leading to a significant increase in net yields and net income. Baptista Research also delves into evaluating various factors influencing the company’s stock price and conducts an independent valuation using a Discounted Cash Flow (DCF) methodology, showcasing a positive outlook for Royal Caribbean Cruises.
A look at Royal Caribbean Cruises Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores for Royal Caribbean Cruises, the company seems to have a promising long-term outlook. With a high Growth score of 4 and Momentum score of 5, it indicates that the company is expected to experience significant growth and positive momentum in the future. This suggests that Royal Caribbean Cruises is well-positioned to expand its business and attract investors.
While the Value and Resilience scores are not as high, with scores of 2 and 2 respectively, the overall picture painted by the Smart Scores is positive for Royal Caribbean Cruises. Despite a lower Dividend score of 1, the company’s strong Growth and Momentum scores signal a potentially bright future ahead in the cruise vacation industry.
Summary: Royal Caribbean Cruises Ltd. is a major player in the global cruise vacation industry, offering a range of cruise experiences across different market segments, from contemporary to deluxe. With a solid Growth and Momentum score, the company appears poised for future success and growth.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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