Zacks Research Issues Pessimistic Estimate for RCL Earnings

Key Points

• Zacks Research slightly lowered its Q2 2027 EPS estimate for Royal Caribbean to $5.64 from $5.65, while keeping a Hold rating on the stock.
• Royal Caribbean’s latest quarter beat Wall Street expectations, posting $3.60 EPS versus the $3.20 estimate, and revenue grew 11.3% year over year to $4.45 billion.
• Analyst sentiment remains mostly positive overall, with a Moderate Buy consensus and an average price target of $345.58, though some coverage continues to flag valuation risk after the stock’s strong run.

Royal Caribbean Cruises Ltd. (NYSE:RCL - Free Report) - Research analysts at Zacks Research cut their Q2 2027 earnings per share (EPS) estimates for shares of Royal Caribbean Cruises in a research note issued on Friday, June 19th. Zacks Research analyst Team now forecasts that the company will earn $5.64 per share for the quarter, down from their prior forecast of $5.65. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Royal Caribbean Cruises' current full-year earnings is $17.27 per share.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The company reported $3.60 earnings per share for the quarter, topping the consensus estimate of $3.20 by $0.40. Royal Caribbean Cruises had a return on equity of 45.25% and a net margin of 24.36%.The company had revenue of $4.45 billion during the quarter, compared to analyst estimates of $4.46 billion. During the same quarter last year, the firm posted $2.71 EPS. The firm's revenue for the quarter was up 11.3% on a year-over-year basis. Royal Caribbean Cruises has set its Q2 2026 guidance at 3.830-3.930 EPS and its FY 2026 guidance at 17.100-17.500 EPS.

RCL has been the subject of several other research reports. TD Cowen reduced their target price on shares of Royal Caribbean Cruises from $350.00 to $337.00 and set a "buy" rating for the company in a research note on Friday, May 15th. Freedom Capital upgraded shares of Royal Caribbean Cruises to a "strong-buy" rating in a research note on Wednesday, June 3rd. Morgan Stanley cut their price objective on shares of Royal Caribbean Cruises from $310.00 to $280.00 and set an "equal weight" rating for the company in a report on Tuesday, May 26th. UBS Group reduced their price objective on shares of Royal Caribbean Cruises from $321.00 to $309.00 and set a "buy" rating for the company in a research note on Thursday, May 14th. Finally, Citigroup boosted their target price on shares of Royal Caribbean Cruises from $348.00 to $362.00 and gave the company a "buy" rating in a report on Tuesday, June 16th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $345.58.

Royal Caribbean Cruises Price Performance

NYSE RCL opened at $310.13 on Wednesday. The company has a quick ratio of 0.17, a current ratio of 0.20 and a debt-to-equity ratio of 1.96. The company has a market cap of $83.18 billion, a PE ratio of 18.92, a price-to-earnings-growth ratio of 1.08 and a beta of 1.77. Royal Caribbean Cruises has a 52 week low of $232.10 and a 52 week high of $366.50. The firm's 50-day simple moving average is $277.05 and its two-hundred day simple moving average is $286.45.

Royal Caribbean Cruises Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Wednesday, June 3rd will be issued a dividend of $1.50 per share. This represents a $6.00 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Wednesday, June 3rd. Royal Caribbean Cruises's payout ratio is presently 36.61%.

Institutional Investors Weigh In On Royal Caribbean Cruises

Several hedge funds and other institutional investors have recently modified their holdings of RCL. Capital International Investors raised its position in shares of Royal Caribbean Cruises by 9.8% in the fourth quarter. Capital International Investors now owns 36,165,358 shares of the company's stock worth $10,088,156,000 after buying an additional 3,215,382 shares in the last quarter. Norges Bank purchased a new position in shares of Royal Caribbean Cruises during the fourth quarter worth about $456,752,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of Royal Caribbean Cruises by 25,747.4% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,202,161 shares of the company's stock worth $335,307,000 after purchasing an additional 1,197,510 shares in the last quarter. Capital Research Global Investors increased its position in shares of Royal Caribbean Cruises by 4.8% in the fourth quarter. Capital Research Global Investors now owns 20,176,544 shares of the company's stock worth $5,627,669,000 after purchasing an additional 920,042 shares during the last quarter. Finally, Nordea Investment Management AB increased its position in shares of Royal Caribbean Cruises by 135.0% in the fourth quarter. Nordea Investment Management AB now owns 1,306,784 shares of the company's stock worth $366,925,000 after purchasing an additional 750,723 shares during the last quarter. 87.53% of the stock is currently owned by institutional investors.

Key Headlines Impacting Royal Caribbean Cruises

Here are the key news stories impacting Royal Caribbean Cruises this week:

• Positive Sentiment: Zacks Research raised near-term earnings estimates for Royal Caribbean, including higher forecasts for Q3 2027, Q4 2027, and Q1 2028, reinforcing expectations for continued profit growth. Article Title
• Positive Sentiment: Broader cruise-sector optimism has been supported by falling oil prices and hopes for lower geopolitical risk, which can improve margins for cruise operators like Royal Caribbean. Article Title
• Neutral Sentiment: Royal Caribbean’s latest quarter has been described as its “best quarter ever,” but investors are still weighing whether the stock’s strong operating performance is already reflected in the valuation. Article Title
• Neutral Sentiment: Carnival’s earnings miss and revenue weakness are pressuring peer sentiment, but Royal Caribbean is outperforming comparatively, suggesting investors see it as the stronger cruise name right now. Article Title
• Negative Sentiment: Some market coverage continues to flag valuation and risk concerns after the stock’s strong rally, which could limit further upside if earnings growth slows. Article Title

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises NYSE: RCL, operating as part of the Royal Caribbean Group, is a global cruise company that develops, markets and operates passenger cruise ships. The company operates multiple consumer-facing cruise brands that offer short- and long-duration itineraries and a range of onboard experiences. Its core activities include itineraries and voyage operations, guest services and hospitality, onboard food and beverage, entertainment and recreation programming, and the commercial activities needed to sell and support cruises through both direct and travel‑agent channels.

Royal Caribbean's ships serve a broad set of geographies worldwide, regularly deploying vessels in the Caribbean, North America (including Alaska), Europe, Asia, Australia and South America.

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