Royal Caribbean Q3 profit beat expectations on booking volumes; outlook raised
Overview
US cruise operator's Q3 revenue rose 9% yr/yr to $5.6 bln
Q3 adjusted EPS of $6.57 beat analyst expectations
Company raised full-year adjusted EPS outlook, citing strong demand and cost control
Outlook
Royal Caribbean raises full-year 2026 adjusted EPS guidance to $17.85-$17.95
Company expects Q4 2026 adjusted EPS of $3.48-$3.58
Royal Caribbean sees 2026 revenue growth of 9% and net yields up about 2.7%
Result Drivers
CLOSE-IN DEMAND - Co said better-than-expected close-in demand in Europe and the Caribbean drove net yield growth above guidance
COST TIMING - Co attributed lower net cruise costs excluding fuel to timing of expenses that shifted into Q4
BOOKING MOMENTUM - Co reported booking volumes increased in the mid-teens since last earnings call, with 2027 sailings up in the high teens
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | $5.59 bln | ||
Q3 Adjusted EPS | Beat | $6.57 | $6.38 (22 Analysts) |
Q3 EPS | $6.45 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"
Wall Street's median 12-month price target for Royal Caribbean Cruises Ltd. is $346.50, about 23.5% above its October 26 closing price of $280.60
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 17 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)