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Jun 30, 2024
Royal Caribbean Q2 2024 Earnings Report
Royal Caribbean's Q2 2024 earnings exceeded expectations due to strong demand, favorable pricing, and onboard revenue, leading to increased full-year guidance and the reinstatement of dividends.
Key Takeaways
Royal Caribbean Group reported a strong second quarter in 2024, with earnings per share (EPS) of $3.11 and adjusted EPS of $3.21, surpassing the company's guidance. This performance was driven by robust demand, higher pricing, and strong onboard revenue. As a result, the company is increasing its full-year 2024 adjusted EPS guidance to $11.35 - $11.45, representing a 68% year-over-year growth. Additionally, the board of directors has declared a quarterly dividend of $0.40 per share.
Royal Caribbean Group achieved its Trifecta goals 18 months ahead of schedule.
Load factors in the second quarter reached 108%.
The company has reinstated its quarterly dividend at $0.40 per share.
Demand and pricing environment remained very strong, with booking volumes higher than the corresponding period in 2023 and at record pricing levels.
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 anticipates continued strong performance, driven by robust demand for European and Alaskan itineraries and sustained onboard revenue strength. Third quarter Adjusted EPS is expected to be in the range of $4.90 to $5.00.
Positive Outlook
- Net Yields are expected to increase 6.5% to 7.0% in Constant Currency and as-reported for Q3 2024.
- Strong demand for European and Alaskan itineraries is expected to drive yield growth.
- Continued strength in onboard revenue is anticipated.
- Adjusted EPS for the third quarter is projected to be in the range of $4.90 to $5.00.
- Net Yields are expected to increase 10.4% to 10.9% in Constant-Currency and as-reported for full year 2024.
Challenges Ahead
- NCC, excluding Fuel, per APCD is expected to increase 4.7% to 5.2% in Constant Currency and as-reported compared to the third quarter of 2023.
- Net Cruise Costs per APCD vs. 2023 are expected to increase approximately 4.0% for full year 2024.
- Net Cruise Costs per APCD ex. Fuel vs. 2023 are expected to increase approximately 6.0% for full year 2024.
- Fuel expense is estimated at $293 million for the third quarter based on current fuel prices.
- The increase in costs, compared to prior guidance, is driven entirely by higher stock-based compensation due to the significant increase in share price.
Revenue & Expenses
Visualization of income flow from segment revenue to net income