Royal Caribbean sails higher after posting strong Q1 earnings and a surprisingly upbeat profit outlook
Folks are booking cruises no matter what.
Royal Caribbean shares jumped as much as 5% Tuesday morning after the cruise giant largely beat Wall Street’s Q1 estimates and raised its full-year outlook.
Earnings per share came in at $2.71, topping FactSet estimates and exceeding the company’s previous guidance of $2.43 to $2.53. Revenue reached $3.9 billion, slightly below forecasts but up year over year. The company also charted a more profitable path ahead. Royal Caribbean now expects full-year EPS between $14.55 and $15.55, up from its prior forecast of $14.35 to $14.65, as sailing demand stays strong.
“During the first quarter, the company took record bookings during WAVE season. Additionally, during April, the company’s bookings were greater than the same period last year,” Royal Caribbean said in a statement. “Bookings for 2025 have remained on track, cancellation levels are normal, and we continue to see excellent close-in demand.”
The update comes after a turbulent stretch for travel stocks, with tariff uncertainty and concerns over consumer spending weighing heavily. Earlier this month, Morgan Stanley and Stifel both slashed their price targets for Royal Caribbean, citing rougher economic waters, but stayed confident in the company’s long-term direction. The forecast hike comes as a record 19 million Americans are set to sail this year, undeterred by sky-high room prices and fierce competition as operators race to grow their fleets.
Royal Caribbean shares are up over 50% over the past year.