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Mar 31, 2024
Royal Caribbean Q1 2024 Earnings Report
Royal Caribbean Group's first quarter earnings surpassed expectations due to robust demand, strong onboard spending, and favorable expense timing, leading to increased full-year guidance.
Key Takeaways
Royal Caribbean Group reported a strong first quarter, exceeding guidance with an EPS of $1.35 and an adjusted EPS of $1.77. The company is increasing its full-year adjusted EPS guidance to $10.70 - $10.90 due to continued strong demand and a record WAVE season.
Stronger than anticipated demand led to a record WAVE season and continued strength in bookings in April.
Load factors in the first quarter were 107%.
Total revenues were $3.7 billion, Net Income was $360 million or $1.35 per share, Adjusted Net Income was $478 million or $1.77 per share.
The company expects adjusted EPS to grow 60% year over year and be in the range of $10.70 to $10.90.
Royal Caribbean
Royal Caribbean
Royal Caribbean Revenue by Segment
Revenue by Segment
Passenger Ticket Revenue
CapyFin.comOnboard and Other Revenue
CapyFin.com Forward Guidance
Royal Caribbean Group anticipates continued strong performance, projecting Net Yields to increase by 9.0% to 10.0% and Adjusted EPS to be in the range of $10.70 to $10.90 for the full year 2024.
Positive Outlook
- Net Yields are expected to increase 9.0% to 10.0% in Constant-Currency and as-reported.
- Adjusted EPS is expected to grow 60% year over year and be in the range of $10.70 to $10.90.
- The company expects to achieve all of its Trifecta financial goals in 2024: triple digit EBITDA per APCD, ROIC in the teens, and double digit EPS, one year earlier than prior expectations.
- Second Quarter 2024 Net Yields vs. 2023 10.0% to 10.5% 10.2% to 10.7%
- Second quarter Adjusted EPS to be in the range of $2.65 to $2.75
Challenges Ahead
- NCC, excluding Fuel, per APCD is expected to increase approximately 5.5% in Constant-Currency (approximately 5.4% as-reported).
- Approximately one third of the increase in unit costs, compared to prior guidance, is related to lower APCDs due to cancelled Red Sea Sailings with the remainder driven by higher stock-based compensation.
- The increase in earnings includes a $0.10 headwind related to a stronger dollar and higher fuel prices.
- Second Quarter 2024 Net Cruise Costs per APCD vs. 2023 6.1% to 6.6% 6.2% to 6.7%
- Second Quarter 2024 Net Cruise Costs per APCD ex. Fuel vs. 2023 7.2% to 7.7% 7.4% to 7.9%
Revenue & Expenses
Visualization of income flow from segment revenue to net income