Zacks Research Issues Pessimistic Outlook for RCL Earnings

Key Points

• Zacks Research cut Royal Caribbean’s Q2 2027 EPS estimate to $4.96 from $5.64 and maintained a “Hold” rating, signaling a more cautious near-term outlook.
• Royal Caribbean exceeded its latest quarterly expectations, reporting $4.21 EPS versus the $3.98 consensus and $4.83 billion in revenue. Revenue increased 6.5% year over year, while management guided to fiscal 2026 EPS of $17.73–$17.87.
• Despite Zacks’ caution, broader analyst sentiment remains positive, with the stock carrying a “Moderate Buy” consensus rating and a $353.40 average price target. Institutional investors own 87.53% of shares, while CEO Michael Bayley recently sold roughly $4.05 million of stock.

Royal Caribbean Cruises Ltd. (NYSE:RCL - Free Report) - Stock analysts at Zacks Research reduced their Q2 2027 EPS estimates for shares of Royal Caribbean Cruises in a research report issued on Tuesday, August 11th. Zacks Research analyst Team now expects that the company will post earnings per share of $4.96 for the quarter, down from their previous estimate of $5.64. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Royal Caribbean Cruises' current full-year earnings is $17.78 per share.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The company reported $4.21 EPS for the quarter, beating analysts' consensus estimates of $3.98 by $0.23. The company had revenue of $4.83 billion during the quarter, compared to the consensus estimate of $4.82 billion. Royal Caribbean Cruises had a return on equity of 43.33% and a net margin of 23.54%.Royal Caribbean Cruises's revenue was up 6.5% on a year-over-year basis. During the same period last year, the business posted $4.38 earnings per share. Royal Caribbean Cruises has set its FY 2026 guidance at 17.730-17.870 EPS and its Q3 2026 guidance at 6.260-6.360 EPS.

A number of other analysts also recently issued reports on the stock. UBS Group restated a "buy" rating and set a $367.00 price objective on shares of Royal Caribbean Cruises in a report on Monday, August 3rd. Wells Fargo & Company increased their target price on shares of Royal Caribbean Cruises from $361.00 to $388.00 and gave the company an "overweight" rating in a research report on Wednesday, July 29th. Morgan Stanley raised their price target on shares of Royal Caribbean Cruises from $280.00 to $300.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 30th. Stifel Nicolaus upped their price objective on Royal Caribbean Cruises from $410.00 to $415.00 and gave the company a "buy" rating in a research note on Wednesday, July 29th. Finally, Weiss Ratings restated a "buy (b-)" rating on shares of Royal Caribbean Cruises in a research note on Thursday, June 18th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $353.40.

Royal Caribbean Cruises Trading Up 0.8%

NYSE RCL opened at $310.32 on Friday. The business's fifty day moving average is $302.35 and its 200-day moving average is $292.07. The company has a debt-to-equity ratio of 2.03, a current ratio of 0.21 and a quick ratio of 0.19. The stock has a market capitalization of $82.99 billion, a price-to-earnings ratio of 19.18, a PEG ratio of 1.05 and a beta of 1.77. Royal Caribbean Cruises has a one year low of $232.10 and a one year high of $366.50.

Hedge Funds Weigh In On Royal Caribbean Cruises

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. bought a new stake in Royal Caribbean Cruises during the second quarter worth about $6,549,422,000. Capital International Investors boosted its position in Royal Caribbean Cruises by 9.8% during the fourth quarter. Capital International Investors now owns 36,165,358 shares of the company's stock valued at $10,088,156,000 after buying an additional 3,215,382 shares during the period. Norges Bank purchased a new position in shares of Royal Caribbean Cruises in the fourth quarter worth about $456,752,000. Bank of New York Mellon Corp bought a new stake in shares of Royal Caribbean Cruises in the 2nd quarter valued at about $381,271,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in Royal Caribbean Cruises by 25,747.4% during the 4th 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 acquiring an additional 1,197,510 shares during the last quarter. Hedge funds and other institutional investors own 87.53% of the company's stock.

Insider Transactions at Royal Caribbean Cruises

In other news, CEO Michael W. Bayley sold 12,811 shares of the business's stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $315.99, for a total transaction of $4,048,147.89. Following the completion of the transaction, the chief executive officer directly owned 45,297 shares in the company, valued at $14,313,399.03. The trade was a 22.05% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 6.44% of the stock is owned by corporate insiders.

Key Stories Impacting Royal Caribbean Cruises

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

• Positive Sentiment: Near-term earnings estimates moved higher. Zacks Research raised its FY2026 EPS forecast to $17.73 from $17.13, close to the $17.79 consensus estimate. It also increased Q3 2026 EPS to $6.32 from $6.29 and Q4 2026 EPS to $3.60 from $3.37, suggesting improving expectations for the current operating outlook. Zacks Research estimates for Royal Caribbean
• Positive Sentiment: Future profit growth remains intact. Zacks lifted its FY2027 EPS estimate modestly to $19.10 from $19.06, raised Q3 2027 EPS to $5.99 from $5.50, and increased FY2028 EPS to $22.09 from $22.04. These revisions support the longer-term earnings-growth case, even if the changes are relatively small. Wall Street outlook for Royal Caribbean
• Neutral Sentiment: Analyst sentiment remains cautious. Zacks maintained a “Hold” rating. Royal Caribbean’s shares have continued to attract a cautiously optimistic Wall Street outlook despite trailing the broader market over the past year. At roughly 19 times earnings, investors may be balancing solid earnings momentum against the stock’s elevated valuation and high debt leverage. Mixed analyst opinions on Royal Caribbean
• Negative Sentiment: Several longer-term estimates were reduced. Zacks cut Q1 2027 EPS to $3.66 from $3.68, Q1 2028 EPS to $4.92 from $5.20, and Q2 2028 EPS to $5.49 from $5.65. The revisions suggest some uncertainty about the pace of earnings growth beyond 2027. Royal Caribbean earnings estimates
• Negative Sentiment: Jim Cramer’s preference for Viking Holdings over Royal Caribbean may pressure sentiment. Cramer has described Viking as one of his preferred cruise stocks, and Viking’s strong recent performance could encourage investors to favor that competitor over RCL. Jim Cramer prefers Viking over Royal Caribbean

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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