Royal Caribbean Cruises (NYSE:RCL) Announces Earnings Results, Beats Expectations By $0.18 EPS

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) posted its quarterly earnings results on Tuesday. The company reported $2.71 earnings per share for the quarter, topping analysts' consensus estimates of $2.53 by $0.18, Zacks reports. Royal Caribbean Cruises had a net margin of 17.46% and a return on equity of 48.97%. The business's revenue was up 7.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.77 EPS. Royal Caribbean Cruises updated its Q2 2025 guidance to 4.000-4.100 EPS and its FY 2025 guidance to 14.550-15.550 EPS.

Royal Caribbean Cruises Price Performance

Shares of RCL traded down $5.01 on Tuesday, hitting $211.30. The company's stock had a trading volume of 1,913,775 shares, compared to its average volume of 2,304,449. The company has a debt-to-equity ratio of 2.39, a current ratio of 0.17 and a quick ratio of 0.15. The company has a market capitalization of $57.37 billion, a PE ratio of 19.74, a PEG ratio of 0.90 and a beta of 2.26. The company has a 50 day moving average price of $210.95 and a 200 day moving average price of $226.99. Royal Caribbean Cruises has a fifty-two week low of $130.08 and a fifty-two week high of $277.08.

Royal Caribbean Cruises Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, April 4th. Investors of record on Friday, March 7th were paid a $0.75 dividend. The ex-dividend date of this dividend was Friday, March 7th. This represents a $3.00 dividend on an annualized basis and a yield of 1.42%. This is a boost from Royal Caribbean Cruises's previous quarterly dividend of $0.55. Royal Caribbean Cruises's payout ratio is presently 28.06%.

Insider Transactions at Royal Caribbean Cruises

In related news, CFO Naftali Holtz sold 17,000 shares of the stock in a transaction dated Tuesday, February 18th. The stock was sold at an average price of $261.62, for a total transaction of $4,447,540.00. Following the completion of the transaction, the chief financial officer now directly owns 42,127 shares in the company, valued at approximately $11,021,265.74. This trade represents a 28.75 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Richard D. Fain sold 19,500 shares of the stock in a transaction that occurred on Thursday, February 13th. The shares were sold at an average price of $256.68, for a total value of $5,005,260.00. Following the transaction, the director now directly owns 185,021 shares of the company's stock, valued at $47,491,190.28. This trade represents a 9.53 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 109,492 shares of company stock worth $28,571,705. Corporate insiders own 7.95% of the company's stock.

Institutional Inflows and Outflows

An institutional investor recently raised its position in Royal Caribbean Cruises stock. Brighton Jones LLC grew its holdings in Royal Caribbean Cruises Ltd. (NYSE:RCL - Free Report) by 12.2% during the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 1,312 shares of the company's stock after purchasing an additional 143 shares during the period. Brighton Jones LLC's holdings in Royal Caribbean Cruises were worth $303,000 as of its most recent SEC filing. Hedge funds and other institutional investors own 87.53% of the company's stock.

Royal Caribbean Cruises declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, February 12th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the company to purchase up to 1.5% of its shares through open market purchases. Shares buyback plans are often a sign that the company's leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on RCL shares. Citigroup boosted their target price on Royal Caribbean Cruises from $283.00 to $304.00 and gave the stock a "buy" rating in a report on Wednesday, January 29th. Morgan Stanley decreased their target price on shares of Royal Caribbean Cruises from $270.00 to $220.00 and set an "equal weight" rating for the company in a research note on Thursday, April 10th. Loop Capital raised Royal Caribbean Cruises from a "hold" rating to a "buy" rating and set a $250.00 price target for the company in a report on Wednesday, March 5th. The Goldman Sachs Group reduced their price target on shares of Royal Caribbean Cruises from $305.00 to $245.00 and set a "buy" rating on the stock in a research report on Wednesday, April 23rd. Finally, Melius Research upgraded Royal Caribbean Cruises to a "strong-buy" rating in a research note on Monday, April 21st. Four research analysts have rated the stock with a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $272.85.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of February 21, 2024, it operated 65 ships. Royal Caribbean Cruises Ltd.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.