NYSE$RCL

Royal Caribbean Cruises Ltd · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong third quarter earnings driven by high demand and onboard revenue, leading to increased full year adjusted EPS guidance.

Royal Caribbean Group reported a strong third quarter with Earnings per Share (EPS) of $3.65 and Adjusted EPS of $3.85, exceeding expectations due to high demand and onboard revenue. The company is increasing its full year 2023 Adjusted EPS guidance to $6.58 – $6.63. Bookings remain strong and significantly exceed 2019 levels.

  • Third quarter EPS was $3.65 and Adjusted EPS was $3.85, surpassing company guidance.
  • Full year 2023 Adjusted EPS guidance increased to $6.58 - $6.63.
  • Load factor for the third quarter was 110%.
  • Demand for 2024 continues to accelerate, outpacing 2019 levels, with higher booked load factors and rates.

Headline financials

Total Revenue

$4.16B

Previous: $2.99B+39.0%
EPS (adj)

$3.85

Previous: $0.26+1380.8%
Occupancy (Load factor)

110.0%

Previous: 96.0%+14.6%
Capital Expenditures

-$1.33B

Previous: -$2.54B+47.8%
Free Cash Flow

-$320M

Previous: -$2.51B+87.3%
Net Income

$1.01B

Previous: $33M+2960.8%
Operating Income

$1.27B

Previous: $298M+323.9%
Gross Profit

$2.02B

Previous: $1.04B+95.2%
Cash & Equivalents

$600M

Previous: $1.57B-61.7%
Total Assets

$32.8B

Previous: $33.5B-2.1%
Stock-Based Comp

$13.6M

Previous: $14.2M-3.9%

Revenue & EPS history

Royal Caribbean · Revenue · Quarterly

$4.16B

Q3 2023+39%vs Q3 2022
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

The company expects Net Yields to be up 16.2% to 16.7% in Constant-Currency and 15.0% to 15.5% As-Reported, both compared to the fourth quarter of 2019. Adjusted EPS is expected to be $1.05 to $1.10 per share for the fourth quarter.

Tailwinds

  • Continued strong demand for vacation experiences.
  • Strength in onboard revenue.
  • Net Yields are expected to increase 16.2% to 16.7% in Constant-Currency compared to Q4 2019.
  • Net Cruise Costs per APCD for the quarter are expected to increase 3.9% to 4.4% in Constant-Currency compared to Q4 2019.
  • Company expects fourth quarter Adjusted EPS to be $1.05 to $1.10 per share.

Headwinds

  • Fuel pricing and foreign exchange rates are negatively impacting EPS by $0.15.
  • Impacted sailings related to Israel deployment are negatively impacting the quarter by approximately $0.03.
  • Fuel expense is expected to be approximately $300 million for the fourth quarter.
  • Net Cruise Costs per APCD for the quarter are expected to increase 3.3% to 3.8% As-Reported, compared to the fourth quarter of 2019.
  • Fuel pricing and foreign exchange rates are negatively impacting EPS.

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 Q3 2023

Historical avgQ3 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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