NYSE$RCL

Royal Caribbean Cruises Ltd · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Royal Caribbean's Q2 2024 earnings exceeded expectations due to strong demand, favorable pricing, and onboard revenue, leading to increased full-year guidance and the reinstatement of dividends.

Royal Caribbean Group reported a strong second quarter in 2024, with earnings per share (EPS) of $3.11 and adjusted EPS of $3.21, surpassing the company's guidance. This performance was driven by robust demand, higher pricing, and strong onboard revenue. As a result, the company is increasing its full-year 2024 adjusted EPS guidance to $11.35 - $11.45, representing a 68% year-over-year growth. Additionally, the board of directors has declared a quarterly dividend of $0.40 per share.

  • Royal Caribbean Group achieved its Trifecta goals 18 months ahead of schedule.
  • Load factors in the second quarter reached 108%.
  • The company has reinstated its quarterly dividend at $0.40 per share.
  • Demand and pricing environment remained very strong, with booking volumes higher than the corresponding period in 2023 and at record pricing levels.

Headline financials

Total Revenue

$4.11B

Previous: $3.52B+16.7%
EPS

$3.11

Previous: $1.82+70.9%
Occupancy (Load factor)

108.2%

Previous: 105.0%+3.0%
Passengers Carried

2.0M

No prior period
Passenger Cruise Days

13.2M

No prior period
Capital Expenditures

-$2.38B

Previous: -$1.05B-127.2%
Free Cash Flow

-$1.53B

Previous: -$590M-159.1%
Net Income

$854M

Previous: $459M+86.2%
Operating Income

$1.1B

Previous: $772M+42.4%
Gross Profit

$1.96B

Previous: $1.57B+24.9%
Cash & Equivalents

$391M

Previous: $726M-46.2%
Total Assets

$37B

Previous: $32.9B+12.3%
Stock-Based Comp

$38M

Previous: $39.7M-4.3%

Revenue & EPS history

Royal Caribbean · Revenue · Quarterly

$4.11B

Q2 2024+16.7%vs Q2 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Royal Caribbean · $4.16B total across 2 segments · Q3 2023

  • Passenger ticket revenues
    $2.94B+45.5%
  • Onboard and other revenues
    $1.22B+25.4%

Forward guidance

Royal Caribbean anticipates continued strong performance, driven by robust demand for European and Alaskan itineraries and sustained onboard revenue strength. Third quarter Adjusted EPS is expected to be in the range of $4.90 to $5.00.

Tailwinds

  • Net Yields are expected to increase 6.5% to 7.0% in Constant Currency and as-reported for Q3 2024.
  • Strong demand for European and Alaskan itineraries is expected to drive yield growth.
  • Continued strength in onboard revenue is anticipated.
  • Adjusted EPS for the third quarter is projected to be in the range of $4.90 to $5.00.
  • Net Yields are expected to increase 10.4% to 10.9% in Constant-Currency and as-reported for full year 2024.

Headwinds

  • NCC, excluding Fuel, per APCD is expected to increase 4.7% to 5.2% in Constant Currency and as-reported compared to the third quarter of 2023.
  • Net Cruise Costs per APCD vs. 2023 are expected to increase approximately 4.0% for full year 2024.
  • Net Cruise Costs per APCD ex. Fuel vs. 2023 are expected to increase approximately 6.0% for full year 2024.
  • Fuel expense is estimated at $293 million for the third quarter based on current fuel prices.
  • The increase in costs, compared to prior guidance, is driven entirely by higher stock-based compensation due to the significant increase in share price.

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 Q2 2024

Historical avgQ2 2024

+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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