Royal Caribbean Beats Q2 Estimates, Lifts Full-Year Profit Outlook

Royal Caribbean Cruises posted second-quarter earnings that exceeded analyst expectations. Revenue came in at $4.83 billion, above the $4.82 billion estimate, while adjusted earnings per share reached $4.21, comfortably beating the consensus forecast of $3.98.

The company provided an upbeat outlook for the remainder of the year. For the third quarter, it expects adjusted EPS between $6.26 and $6.36, slightly above the $6.27 consensus, and projects available passenger cruise days (APCD) of 14.9 million. Full-year APCD is seen at 56.9 million, in line with estimates.

Management raised its full-year adjusted EPS guidance to a range of $17.73 to $17.87, up from the prior $17.10 to $17.50. The cruise line also tightened its net yield forecast, now expecting constant currency net yields up 1.75% to 2.25% and as-reported net yields up 2.35% to 2.85%, compared with the earlier 2.1% to 4.1% range.

Third-quarter net yields are projected to be roughly flat year-over-year.