Royal Caribbean Q3 Earnings Surpass Estimates, '24 View Up

Royal Caribbean Cruises Ltd. RCL reported impressive third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the quarter, the company exceeded its guidance, driven by stronger pricing on close-in demand, continued growth in onboard revenues and reduced costs due to timing factors. The company has raised its outlook for 2024 and reported elevated demand patterns heading into 2025. Despite a tough comparison in yields, RCL’s balanced approach — focusing on moderate capacity and yield growth alongside disciplined cost management — positions it well for growth.RCL’s Q3 Earnings & RevenuesFor third-quarter 2024, the company reported an adjusted EPS of $5.20, beating the Zacks Consensus Estimate of $5.05. In the prior-year quarter, RCL had recorded an adjusted EPS of $3.85.Quarterly revenues of $4.88 billion outpaced the consensus mark of $4.86 billion. In the prior-year quarter, RCL reported revenues of $4.16 billion. A rise in close-in demand (at higher prices) and continued strength in onboard revenues added to the positives.Royal Caribbean Cruises Ltd. Price, Consensus and EPS Surprise Royal Caribbean Cruises Ltd. price-consensus-eps-surprise-chart | Royal Caribbean Cruises Ltd. QuoteQuarterly HighlightsIn third-quarter 2024, passenger ticket revenues amounted to $3.47 billion, up from $2.94 billion in the prior-year quarter. Our estimate for passenger ticket revenues was $3.3 billion.Onboard and other revenues increased to $1.41 billion, up from 1.21 billion reported in the year-ago quarter. Our estimate for the metric was $1.4 billion.Total cruise operating expenses amounted to $2.39 billion, up 11.9% year over year. Our estimate for the metric was $2.29 billion.Net yields rose 7.9% on a constant-currency (cc) and reported basis compared with third-quarter 2023 levels. Net cruise costs, excluding fuel per APCD, rose 4% on a reported basis and cc compared with third-quarter 2023 figures.Other Financial InformationAs of Sept. 30, 2024, RCL reported cash and cash equivalents of $418 million compared with $391 million as of June 30, 2024. As of Sept. 30, long-term debt was $18.97 billion compared with $19.8 billion as of June 30, 2024.Booking UpdateDuring the third quarter, the company reported solid booking volumes across all key itineraries. It also stated a rise in consumer spending onboard and pre-cruise purchases (exceeding 2023 levels) driven by higher participation at increased prices. In third-quarter 2024, load factors were 111%.The company is highly optimistic about the demand and pricing landscape for 2025. The company's new ships, existing fleet and private destinations have received a strong market response, paving the way for yield growth in 2025.As of Sept. 30, 2024, RCL had $5.32 billion in customer deposits compared with $5.31 billion in the prior-year period.RCL’s Q4 & 2024 OutlookIn fourth-quarter 2024, RCL expects depreciation and amortization expenses of $410-$420 million. Net interest expenses (excluding loss on extinguishment of debt) are projected between $250 million and $260 million. Management estimates adjusted EPS of $1.40-$1.45.For 2024, the company expects depreciation and amortization expenses to be in the range of $1,590-$1,600 million compared with the previous expectation of $1,600-$1,610 million. Net interest expenses (excluding loss on extinguishment of debt) for the year are expected to be in the range of $1,105-$1,115 million, down from the earlier guidance of $1,130-$1,140 million.The company expects net yields to increase by 10.9%-11.4% on a reported basis and 10.8%-11.3% at cc, on a year-over-year basis. Earlier, the company projected net yields to rise 10.4%-10.9% (on a reported and constant-currency basis) year over year.For 2024, the company anticipates adjusted EPS in the range of $11.57-$11.62, up from the prior projection of $11.35-$11.45. The Zacks Consensus Estimate for 2024 earnings is pegged at $11.62.RCL’s Zacks RankRoyal Caribbean currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.Recent Consumer Discretionary ReleasesCarnival Corporation & plc CCL reported impressive third-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. The upside was backed by sustained demand strength and increased booking volumes. During the quarter, the company reported strong booking momentum for 2025, with volumes remaining robust at higher prices compared to the prior year.The company raised its full-year 2024 adjusted EBITDA guidance due to strong demand and cost-saving opportunities. Management expects net yields, at constant currency, to increase around 10.4% compared with 2023 levels, exceeding the prior guidance provided in June due to strong demand.Las Vegas Sands Corp. LVS reported lower-than-expected third-quarter 2024 results, with earnings and net revenues missing the Zacks Consensus Estimate. Also, the metrics decreased on a year-over-year basis. The quarterly results were impacted by a lower-than-expected hold in Singapore. Also, disruptions from ongoing development work at the Londoner in Macao added to the downside.Nonetheless, the company continued to execute its strategic objectives in the quarter. The recovery in Macao progressed, supported by decades of investment aimed at enhancing business and leisure tourism. In Singapore, Marina Bay Sands maintained strong financial and operational performance. LVS remains optimistic about achieving industry-leading growth in Macao and Singapore, driven by its ongoing capital investment programs in these markets.Hilton Worldwide Holdings Inc. HLT reported third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.The company's performance was backed by notable improvements in revenue per available room, attributed to higher occupancy rates and average daily rates. Furthermore, in the quarter, Hilton opened 531 new hotels. It achieved net room growth of 33,600. As of Sept. 30, 2024, Hilton's development pipeline comprised nearly 3,525 hotels, with almost 492,400 rooms across 120 countries and territories — including 28 countries and regions with no running hotels. For 2024, the company expects net unit growth in the range of 7-7.5%.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carnival Corporation (CCL): Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report Las Vegas Sands Corp. (LVS): Free Stock Analysis Report Hilton Worldwide Holdings Inc. (HLT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks