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Sep 30, 2024
Royal Caribbean Q3 2024 Earnings Report
Reported strong third quarter results driven by robust demand for vacation experiences and increased full year guidance.
Key Takeaways
Royal Caribbean Group reported a strong third quarter with Earnings per Share (EPS) of $4.21 and Adjusted EPS of $5.20, exceeding expectations due to strong pricing, onboard revenue, and lower costs. The company is raising its full year 2024 Adjusted EPS guidance to $11.57 - $11.62.
Third quarter EPS was $4.21 and Adjusted EPS was $5.20, surpassing guidance.
Full year 2024 Adjusted EPS guidance increased to $11.57 - $11.62.
Load factor for the third quarter was 111%.
Company announced major strategic initiatives to continue expansion of the company's private destination footprint
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 fourth quarter Adjusted EPS to be in the range of $1.40 to $1.45. Net Yields are expected to increase 5.1% to 5.6% in Constant Currency and 5.3% to 5.8% as-reported as compared to the same period in the prior year.
Positive Outlook
- Strong demand for Caribbean itineraries.
- Continued strength in onboard revenue.
- Net Yields are expected to increase 5.1% to 5.6% in Constant Currency and 5.3% to 5.8% as-reported as compared to the same period in the prior year.
- The expected yield growth in the fourth quarter is on top of 17.9% growth in Net Yields in Constant Currency in the fourth quarter of 2023 as compared to the same period in 2019.
- Forecasted consumption is 61% hedged via swaps for 2024.
Challenges Ahead
- Net Yield expectations in the fourth quarter include approximately 40bps of negative impact from Hurricane Milton.
- NCC, excluding Fuel, per APCD, is expected to increase 11.6% to 12.1% in Constant Currency and 11.7% to 12.2% as-reported as compared to the same period in the prior year.
- The year-over-year increase is predominately driven by an increase in drydock days.
- The year-over-year increase is predominately driven by non-cash stock compensation.
- The year-over-year increase is predominately driven by shifting of costs from the third quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income