Royal Caribbean topped Wall Street's growth targets, something it has done with ease since returning to profitability more than a year ago. It was a "beat and raise" performance, and the stock is now selling for just 13 times the midpoint of its higher full-year earnings guidance.
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Although the revenue and EPS for Royal Caribbean (RCL) give a sense of how its business performed in the quarter ended June 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Royal Caribbean Cruises Ltd (NYSE:RCL) shares slumped more than 5% as projected higher cruise costs tainted its better-than-expected performance during the second quarter. The cruise operator now expects its full-year cruise costs to rise about 6%, above its earlier forecast of a 5.5% increase.
Royal Caribbean's (RCL) second-quarter performance benefits from solid bookings, a rise in pre-cruise purchases and a strong pricing environment.
Royal Caribbean (RCL) came out with quarterly earnings of $3.21 per share, beating the Zacks Consensus Estimate of $2.77 per share. This compares to earnings of $1.82 per share a year ago.
Royal Caribbean Group RCL, -3.64% reported second-quarter profit that beat expectations and raised its full-year outlook amid continued strong demand for cruises, but the stock slumped 2.2% in premarket trading as passenger cruise days missed and the outlook for capacity changes was trimmed. Net income jumped to $854 million, or $3.11 a share, from $459 million, or $1.70 a share, in the same period a year ago.
Royal Caribbean stock has more than tripled since the start of last year, but it's somehow trading for just 13 times next year's projected earnings. The stock hit another all-time high on Tuesday, but it has posted double-digit percentage beats on the bottom line every quarter over the past year.
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Here is how Royal Caribbean (RCL) and Cinemark Holdings (CNK) have performed compared to their sector so far this year.
Royal Caribbean's (RCL) second-quarter performance is likely to have benefited from robust demand, courtesy of its digital initiatives, ship upgrades and enhanced product offerings.