Royal Caribbean Cruises Ltd (doing business as Royal Caribbean Group)

Latest Results (17.12.2024):

Third Quarter 2024 Earnings

Royal Caribbean Cruises Ltd (doing business as Royal Caribbean Group) reported a Net Income of $1.1 billion or $4.21 per share for the third quarter of 2024. Adjusted Net Income was $1.4 billion or $5.20 per share. The company achieved total revenues of $4.9 billion and an Adjusted EBITDA of $2.1 billion, reflecting strong financial performance driven by robust demand and pricing.

Full Year 2024 Outlook

For the full year 2024, Royal Caribbean Group has increased its Adjusted EPS guidance to a range of $11.57 to $11.62, representing a 71% year-over-year growth. The company expects Net Yields to increase by 10.8% to 11.3% in Constant Currency. The rise in costs is attributed to higher stock-based compensation, with NCC, excluding Fuel, per APCD expected to increase by approximately 6.2% to 6.7%.

Bookings and Onboard Revenue

Royal Caribbean Group experienced an acceleration in demand and pricing, surpassing 2023 levels. The third quarter saw higher load factors and onboard revenue due to strong consumer spending and pre-cruise purchases. The company anticipates continued yield growth in 2025, supported by strong demand for its new ships and private destinations.

Fourth Quarter 2024 Guidance

For the fourth quarter of 2024, Royal Caribbean Group expects Net Yields to increase by 5.1% to 5.6% in Constant Currency. The growth is driven by strong demand for Caribbean itineraries and onboard revenue. The company forecasts Adjusted EPS to be in the range of $1.40 to $1.45, considering factors like Hurricane Milton's impact and cost shifts from the third quarter.

Fuel Expense and Hedging

In the third quarter of 2024, Royal Caribbean Group's bunker pricing, net of hedging, was $684 per metric ton with a consumption of 424,000 metric tons. For the fourth quarter, the company anticipates fuel expenses of $285 million at a forecasted consumption of 433,000 metric tons, with 61% hedged via swaps. The annual average cost per metric ton of the hedge portfolio is projected to decrease over the next few years.