.July 25, 2024 08:59:00 AM

Royal Caribbean (NYSE:RCL) reported second-quarter results, with an adjusted EPS of $3.21, beating analyst expectations of $2.75. Revenue reached $4.1 billion, exceeding the consensus estimate of $4.04 billion. Despite the positive results, Royal Caribbean shares fell by 2% in pre-market trading.

The company attributed its strong performance to robust pricing on close-in demand and onboard revenue, as well as favorable expense timing. Net income for the quarter surged to $854 million, or $3.11 per share, from $459 million, or $1.70 per share, in the same period last year.

Adjusted net income also rose to $882 million, or $3.21 per share, from $492 million, or $1.82 per share, year-over-year. President and CEO Jason Liberty highlighted the exceptional demand for Royal Caribbean’s vacation experiences as a key driver of the company’s accelerated performance and substantial yield growth.

Royal Caribbean raised its full-year 2024 adjusted EPS guidance to a range of $11.35 to $11.45, reflecting a 68% year-over-year growth and surpassing the Street estimate of $11.08. The company’s optimistic outlook is supported by record bookings and strong consumer spending onboard and through pre-cruise purchases.

For the third quarter of 2024, Royal Caribbean expects an adjusted EPS between $4.90 and $5.00. Net yields are projected to increase by 6.5% to 7.0%, and net cruise costs, excluding fuel per available passenger cruise days, are anticipated to rise by 4.7% to 5.2%.