Royal Caribbean Cruises (NYSE:RCL) Releases Quarterly 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) posted its quarterly 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. Royal Caribbean Cruises had a net margin of 20.97% and a return on equity of 47.15%. The business had revenue of $4.54 billion during the quarter, compared to analyst estimates of $4.54 billion. During the same period in the previous year, the business posted $3.21 EPS. The company's quarterly revenue was up 10.4% on a year-over-year basis. 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 Price Performance

Shares of RCL traded down $3.41 during trading hours on Wednesday, hitting $330.96. The stock had a trading volume of 2,433,257 shares, compared to its average volume of 2,087,966. The company's fifty day moving average is $299.59 and its two-hundred day moving average is $252.59. The company has a debt-to-equity ratio of 1.88, a current ratio of 0.23 and a quick ratio of 0.15. Royal Caribbean Cruises has a 52 week low of $130.08 and a 52 week high of $355.91. The stock has a market capitalization of $89.88 billion, a price-to-earnings ratio of 24.81, a P/E/G ratio of 0.94 and a beta of 2.17.

Royal Caribbean Cruises Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, July 3rd. Stockholders of record on Wednesday, June 4th were issued a $0.75 dividend. This represents a $3.00 annualized dividend and a dividend yield of 0.91%. Royal Caribbean Cruises's payout ratio is 24.92%.

Analyst Ratings Changes

A number of research firms have issued reports on RCL. Loop Capital reissued a "buy" rating and set a $290.00 target price (up from $250.00) on shares of Royal Caribbean Cruises in a research note on Tuesday, June 3rd. UBS Group set a $311.00 target price on shares of Royal Caribbean Cruises and gave the company a "buy" rating in a research note on Tuesday, May 20th. The Goldman Sachs Group dropped 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. Citigroup boosted their target price on shares of Royal Caribbean Cruises from $390.00 to $399.00 and gave the stock a "buy" rating in a report on Wednesday. Finally, Wall Street Zen downgraded shares of Royal Caribbean Cruises from a "buy" rating to a "hold" rating in a report on Saturday, June 28th. Five analysts have rated the stock with a hold rating, eighteen have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, Royal Caribbean Cruises presently has an average rating of "Moderate Buy" and an average target price of $321.10.

Insider Buying and Selling at Royal Caribbean Cruises

In other Royal Caribbean Cruises news, Director Richard D. Fain sold 19,600 shares of the stock in a transaction dated Monday, May 19th. The shares were sold at an average price of $253.10, for a total transaction of $4,960,760.00. Following the sale, the director owned 165,421 shares of the company's stock, valued at $41,868,055.10. This represents a 10.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 6.95% of the company's stock.

Institutional Investors Weigh In On Royal Caribbean Cruises

A hedge fund recently raised its stake in Royal Caribbean Cruises stock. Brighton Jones LLC boosted its stake in shares of Royal Caribbean Cruises Ltd. (NYSE:RCL - Free Report) by 12.2% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 1,312 shares of the company's stock after acquiring an additional 143 shares during the quarter. Brighton Jones LLC's holdings in Royal Caribbean Cruises were worth $303,000 as of its most recent SEC filing. 87.53% of the stock is owned by institutional investors and hedge funds.

About Royal Caribbean Cruises

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.