Shares in cruise operator Royal Caribbean (RCL) have sailed 13% higher after the company reported that its bookings hit record levels in 2024.
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Royal Caribbean reported earnings per share (EPS) of $10.94 for all of last year, beating earlier guidance that called for $6.31. Full-year revenues of $16.4 billion surpassed last year’s sales of $13.9 billion. The company attributed the strong results to soaring demand from passengers.
Cruise guests are also paying higher prices and spending more money on food and drinks, said the company in its earnings release. Management at Royal Caribbean said the company recently recorded the best five booking weeks in its history.
Expanding into River Cruises
Royal Caribbean has also launched a new service called “Celebrity River Cruises” that will begin taking bookings this year. It said it has committed to an initial 10 river cruise ships and plans to set sail with them in 2027. All of the trips will take place in Europe and focus on offering premium experiences such as fine dining.
The addition of the river cruises will help Royal Caribbean’s 2025 financial results, said the company. It is forecasting adjusted EPS in a range of $14.35 to $14.65. The guidance takes into account a headwind of $0.65 related to foreign currency exchanges and fuel rates. The forward outlook is above analyst consensus estimates of $14.41 per share.
Is RCL Stock a Buy?
On TipRanks, RCL stock has a consensus Strong Buy rating based on 12 Buy, two Hold, and no Sell ratings assigned in the last three months. The average RCL price target of $271 implies 2.07% upside from current levels.
