Royal Caribbean Earnings: What To Look For From RCL

Cruise vacation company Royal Caribbean (NYSE:RCL) will be reporting results tomorrow before the bell. Here’s what to expect.

Royal Caribbean beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $4.11 billion, up 16.7% year on year. It was a strong quarter for the company, with optimistic earnings guidance for the next quarter and a decent beat of analysts’ earnings estimates. It reported 13.23 million passenger cruise days, up 7.6% year on year.

Is Royal Caribbean a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Royal Caribbean’s revenue to grow 17.8% year on year to $4.90 billion, slowing from the 39% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.03 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Royal Caribbean has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Royal Caribbean’s peers in the travel and vacation providers segment, some have already reported their Q3 results, giving us a hint as to what we can expect. American Airlines delivered year-on-year revenue growth of 1.2%, meeting analysts’ expectations, and Carnival reported revenues up 15.2%, in line with consensus estimates. American Airlines traded up 2.5% following the results while Carnival was down 2.8%.

Read our full analysis of American Airlines’s results here and Carnival’s results here.

Inflation fears have put pressure on growth stocks, and while some of the travel and vacation providers stocks have fared somewhat better, they have not been spared, with share prices down 2% on average over the last month. Royal Caribbean is up 13% during the same time and is heading into earnings with an average analyst price target of $195.40 (compared to the current share price of $200.50).

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