Royal Caribbean Cruises (NYSE:RCL) Announces Earnings Results, Beats Estimates By $0.34 EPS

Key Points

• Royal Caribbean Cruises reported quarterly earnings of $4.38 EPS, exceeding expectations by $0.34, with a revenue increase of 10.4% year-over-year.
• The company updated its FY 2025 EPS guidance to a range of $15.410 to $15.550, along with Q3 2025 EPS guidance set at $5.550 to $5.650.
• Royal Caribbean Cruises declared a quarterly dividend of $0.75 per share, resulting in an annualized dividend of $3.00 and a yield of 0.93%.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) released its earnings results on Tuesday. The company reported $4.38 EPS for the quarter, beating the consensus estimate of $4.04 by $0.34, Zacks reports. The company had revenue of $4.54 billion during the quarter, compared to analysts' expectations of $4.54 billion. Royal Caribbean Cruises had a return on equity of 47.15% and a net margin of 20.97%. The business's revenue for the quarter was up 10.4% on a year-over-year basis. During the same period last year, the firm earned $3.21 EPS. Royal Caribbean Cruises updated its FY 2025 guidance to 15.410-15.550 EPS and its Q3 2025 guidance to 5.550-5.650 EPS.

Royal Caribbean Cruises Stock Performance

Shares of Royal Caribbean Cruises stock traded down $3.75 during mid-day trading on Friday, hitting $314.12. 2,827,375 shares of the stock were exchanged, compared to its average volume of 2,165,557. The company has a debt-to-equity ratio of 1.88, a quick ratio of 0.15 and a current ratio of 0.23. The company has a market capitalization of $85.32 billion, a P/E ratio of 23.55, a P/E/G ratio of 0.89 and a beta of 2.22. The company has a 50-day simple moving average of $302.63 and a 200 day simple moving average of $253.80. Royal Caribbean Cruises has a 12 month low of $130.08 and a 12 month high of $355.91.

Royal Caribbean Cruises Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, July 3rd. Shareholders of record on Wednesday, June 4th were given a dividend of $0.75 per share. This represents a $3.00 annualized dividend and a dividend yield of 1.0%. Royal Caribbean Cruises's dividend payout ratio is currently 22.49%.

Insider Buying and Selling

In related news, Director Richard D. Fain sold 19,600 shares of Royal Caribbean Cruises stock in a transaction that occurred on Monday, May 19th. The shares were sold at an average price of $253.10, for a total value of $4,960,760.00. Following the sale, the director owned 165,421 shares of the company's stock, valued at approximately $41,868,055.10. The trade was a 10.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Henry L. Pujol sold 5,207 shares of the business's stock in a transaction on Wednesday, July 30th. The shares were sold at an average price of $329.47, for a total transaction of $1,715,550.29. Following the sale, the chief accounting officer directly owned 7,826 shares in the company, valued at $2,578,432.22. The trade was a 39.95% decrease in their position. The disclosure for this sale can be found here. Insiders own 6.95% of the company's stock.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Royal Caribbean Cruises stock. Brighton Jones LLC boosted its holdings in Royal Caribbean Cruises Ltd. (NYSE:RCL - Free Report) by 12.2% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. 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 at the end of the most recent reporting period. Hedge funds and other institutional investors own 87.53% of the company's stock.

Analyst Ratings Changes

Several research firms have recently issued reports on RCL. The Goldman Sachs Group reduced their price target on 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. JPMorgan Chase & Co. lifted their target price on Royal Caribbean Cruises from $302.00 to $367.00 and gave the company an "overweight" rating in a research report on Wednesday. Bank of America boosted their price target on Royal Caribbean Cruises from $230.00 to $355.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 23rd. Wall Street Zen cut Royal Caribbean Cruises from a "buy" rating to a "hold" rating in a report on Saturday, June 28th. Finally, Jefferies Financial Group boosted their price target on Royal Caribbean Cruises from $235.00 to $315.00 and gave the company a "hold" rating in a research note on Monday, July 7th. Five research analysts have rated the stock with a hold rating, eighteen have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $321.10.

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.