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Sep 30, 2023
Royal Caribbean Q3 2023 Earnings Report
Reported strong third quarter earnings driven by high demand and onboard revenue, leading to increased full year adjusted EPS guidance.
Key Takeaways
Royal Caribbean Group reported a strong third quarter with Earnings per Share (EPS) of $3.65 and Adjusted EPS of $3.85, exceeding expectations due to high demand and onboard revenue. The company is increasing its full year 2023 Adjusted EPS guidance to $6.58 – $6.63. Bookings remain strong and significantly exceed 2019 levels.
Third quarter EPS was $3.65 and Adjusted EPS was $3.85, surpassing company guidance.
Full year 2023 Adjusted EPS guidance increased to $6.58 - $6.63.
Load factor for the third quarter was 110%.
Demand for 2024 continues to accelerate, outpacing 2019 levels, with higher booked load factors and rates.
Royal Caribbean
Royal Caribbean
Royal Caribbean Revenue by Segment
Revenue by Segment
Passenger Ticket Revenue
CapyFin.comOnboard and Other Revenue
CapyFin.com Forward Guidance
The company expects Net Yields to be up 16.2% to 16.7% in Constant-Currency and 15.0% to 15.5% As-Reported, both compared to the fourth quarter of 2019. Adjusted EPS is expected to be $1.05 to $1.10 per share for the fourth quarter.
Positive Outlook
- Continued strong demand for vacation experiences.
- Strength in onboard revenue.
- Net Yields are expected to increase 16.2% to 16.7% in Constant-Currency compared to Q4 2019.
- Net Cruise Costs per APCD for the quarter are expected to increase 3.9% to 4.4% in Constant-Currency compared to Q4 2019.
- Company expects fourth quarter Adjusted EPS to be $1.05 to $1.10 per share.
Challenges Ahead
- Fuel pricing and foreign exchange rates are negatively impacting EPS by $0.15.
- Impacted sailings related to Israel deployment are negatively impacting the quarter by approximately $0.03.
- Fuel expense is expected to be approximately $300 million for the fourth quarter.
- Net Cruise Costs per APCD for the quarter are expected to increase 3.3% to 3.8% As-Reported, compared to the fourth quarter of 2019.
- Fuel pricing and foreign exchange rates are negatively impacting EPS.
Revenue & Expenses
Visualization of income flow from segment revenue to net income