NYSE$RCL

Royal Caribbean Cruises Ltd · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Royal Caribbean Group reported first quarter earnings and increased full year guidance on strong revenue outlook.

Royal Caribbean Group reported a first quarter Loss per Share of $(0.19) and Adjusted Loss per Share of $(0.23), which was significantly better than the company's guidance. The company is increasing its 2023 Adjusted Earnings per Share guidance to $4.40 – $4.80 due to a record-breaking WAVE season and accelerating demand.

  • Stronger than anticipated demand has led to a record-breaking and extended WAVE season, translating into a robust booking environment with higher load factors and higher prices.
  • Load factors in the first quarter were 102%.
  • Total revenues were $2.9 billion, Net Loss was $(47.9) million or $(0.19) per share, and Adjusted Net Loss was $(58.9) million or $(0.23) per share.
  • Customer deposit balance was at a record $5.3 billion as of March 31, 2023.

Headline financials

Total Revenue

$2.89B

Previous: $1.06B+172.4%
EPS (adj)

-$0.23

Previous: -$4.57+95.0%
Occupancy (Load factor)

102.0%

Previous: 57.4%+77.7%
Passengers Carried

1.8M

Previous: 734.8K+145.8%
Capital Expenditures

-$252M

Previous: -$1.36B+81.5%
Free Cash Flow

-$300M

Previous: -$2.53B+88.1%
Net Income

-$47.9M

Previous: -$1.17B+95.9%
Operating Income

$272M

Previous: -$859M+131.6%
Gross Profit

$1.09B

Previous: -$126M+970.0%
Cash & Equivalents

$1.23B

Previous: $1.97B-37.7%
Total Assets

$32.9B

Previous: $32.9B-0.2%
Stock-Based Comp

$26M

Previous: $22.8M+13.8%

Revenue & EPS history

Royal Caribbean · Revenue · Quarterly

$2.89B

Q1 2023+172.4%vs Q1 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Royal Caribbean · $2.89B total across 2 segments · Q1 2023

  • Passenger ticket revenues
    $1.9B+190.9%
  • Onboard and other revenues
    $989M+142.7%

Forward guidance

Royal Caribbean Group provided the following guidance for the second quarter and full year 2023.

Tailwinds

  • Net Yields are expected to increase 9.6% to 10.1% as-reported and 10.1% to 10.6% in Constant-Currency, compared to the second quarter of 2019.
  • NCC, excluding Fuel, per APCD is expected to increase approximately 8.6% as-reported and approximately 8.9% in Constant-Currency, compared to second quarter 2019.
  • Adjusted Earnings per Share for the second quarter are expected to be in the range of $1.50 to $1.60 per share.
  • Net Yields are expected to increase 6.25% to 7.25% as-reported and 6.75% to 7.75% in Constant-Currency, compared to 2019 for full year 2023.
  • NCC, excluding Fuel, per APCD is expected to increase 5.2% to 6.2% as-reported and 5.5% to 6.5% in Constant-Currency, compared to 2019 for full year 2023.

Headwinds

  • Net Cruise Costs per APCD vs. 2019 11.8% to 12.8%
  • Net Cruise Costs per APCD vs. 2019 10.0% to 11.0%
  • Depreciation and amortization $360 to $370 million
  • Net Interest, excluding loss on extinguishment of debt $305 to $315 million
  • Fuel Expenses Approx. $276 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+2.4%

Avg return

Earnings day

+3.2%

Avg return

5 days after

+6.0%

Avg return

30 days after

69%

48 / 70 earnings

Positive

+18.8%

Q4 2025

Best reaction

-12.6%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.6%+3.9%+12.0%
Q4 2025+18.8%+11.9%+6.6%
Q3 2025-8.2%-10.4%-17.0%
Q2 2025-5.0%-10.7%+3.9%
Q1 2025+0.1%+6.3%+17.6%
Q4 2024+12.0%+12.6%+0.6%
Q3 2024+2.4%-0.7%+18.7%
Q2 2024-6.7%-4.6%-0.9%
Q1 2024+2.8%+2.1%+8.6%
Q4 2023-3.2%-5.4%-2.5%
Q3 2023+0.7%+3.1%+27.0%
Q2 2023+7.6%+6.5%-1.1%
Q1 2023+12.7%+14.7%+28.5%
Q4 2022+7.8%+3.7%-1.2%
Q3 2022+10.1%+9.4%+21.8%
Q2 2022+10.9%+5.0%+21.2%
Q1 2022-10.2%-21.7%-27.6%
Q4 2021+3.3%+11.0%-12.3%
Q3 2021+4.8%+6.6%-19.3%
Q2 2021+4.8%+3.9%+6.6%
Q1 2021-0.6%-4.0%+6.6%
Q4 2020+14.2%+18.3%+3.4%
Q3 2020+6.2%+8.4%+53.4%
Q2 2020+12.6%+16.1%+34.6%
Q1 2020+2.8%+2.3%+31.1%
Q4 2019+1.6%-4.2%-43.5%
Q3 2019-3.9%+0.0%+6.0%
Q2 2019-1.2%+0.6%-11.1%
Q1 2019+4.0%+6.8%+0.7%
Q4 2018+7.1%+6.2%+6.2%
Q3 2018-3.6%-4.8%+3.1%
Q2 2018+2.2%+2.0%+11.4%
Q1 2018-5.6%-7.5%-7.3%
Q4 2017+3.7%+5.9%+2.3%
Q3 2017+2.9%-0.9%-1.0%
Q2 2017+3.8%+5.9%+10.1%
Q1 2017+7.9%+7.6%+10.5%
Q4 2016+7.9%+6.8%+9.7%
Q3 2016+13.0%+10.3%+22.0%
Q2 2016-4.3%+3.6%+1.2%
Q1 2016+3.6%
Q4 2015-12.6%
Q3 2015+4.3%
Q2 2015+9.5%
Q1 2015-6.5%
Q4 2014-7.6%
Q3 2014+1.8%
Q2 2014+12.1%
Q1 2014-2.4%
Q4 2013+5.4%
Q3 2013+9.4%
Q2 2013+1.9%
Q1 2013+4.8%
Q4 2012-2.5%
Q3 2012+7.8%
Q2 2012+1.3%
Q1 2012-9.8%
Q4 2011+0.5%
Q3 2011-10.3%
Q2 2011-5.8%
Q1 2011-3.3%
Q4 2010+2.0%
Q4 2008+2.0%
Q3 2009-0.6%
Q3 2010-0.6%
Q2 2010+6.2%
Q2 2009+6.2%
Q4 2009+3.8%
Q1 2009+3.8%
Q1 2010+3.8%

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