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Royal Caribbean Q3 profit beat expectations on booking volumes; outlook raised

By Reuters News


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


Reuters Recommended Reads

  • Oct 27 - Hilton beats Q3 adjusted EPS estimates, net income rises

  • Oct 27 - Hilton raises annual room revenue growth forecast on steady US travel demand

  • Oct 27 - Finnair Q3 revenue rises on strong travel demand; raises guidance


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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