The stock of Royal Caribbean (RCL) is up 3% after the cruise line operator reported financial results that largely beat the expectations of analysts and issued strong forward guidance.
Royal Caribbean reported earnings per share (EPS) of $1.25 U.S. for the fourth and final quarter of 2023, and revenue of $3.30 billion U.S.
Wall Street had expected the cruise ship operator to announce earnings of $1.14 U.S. per share on revenue of $3.40 billion U.S.
It was the seventh consecutive quarterly earnings beat for Royal Caribbean.
The company issued an equally strong outlook for the year ahead, saying that it expects EPS to grow 40% to between $9.50 U.S. and $9.70 U.S. a share.
That beat analysts’ expectations for EPS of $9.21 U.S. this year, according to data from FactSet.
The earnings guidance, if achieved, would set a record at Royal Caribbean.
The company attributed the strong earnings and guidance to a sustained rebound in the number of people booking travel on its cruise ships now that the Covid-19 pandemic is over.
In the last 12 months, Royal Caribbean’s stock has gained 90% to trade at $127.50 U.S. per share.