Royal Caribbean (RCL) Reports Earnings Tomorrow: What To Expect

RCL Cover Image

Cruise vacation company Royal Caribbean (NYSE: RCL) will be reporting earnings this Tuesday before market open. Here’s what you need to know.

Royal Caribbean met analysts’ revenue expectations last quarter, reporting revenues of $4.00 billion, up 7.3% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ EPS estimates. It reported 13.77 million passenger cruise days, up 4.7% 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 10.6% year on year to $4.55 billion, slowing from the 16.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.08 per share.

Royal Caribbean Total Revenue

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 four times over the last two years.

Looking at Royal Caribbean’s peers in the travel and vacation providers segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 9.5%, beating analysts’ expectations by 1.7%, and Delta reported flat revenue, topping estimates by 1.5%. Carnival traded up 5.9% following the results while Delta was also up 11.9%.

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

There has been positive sentiment among investors in the travel and vacation providers segment, with share prices up 10.3% on average over the last month. Royal Caribbean is up 12.7% during the same time and is heading into earnings with an average analyst price target of $324.63 (compared to the current share price of $352.98).

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