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Royal Caribbean (RCL) Q4 Earnings Top Estimates, Revenues Lag
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Royal Caribbean Cruises Ltd. (RCL - Free Report) reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. However, the top and the bottom line increased on a year-over-year basis.
Jason Liberty, president and CEO of Royal Caribbean Group, highlighted the exceptional 2023 performance, witnessing unprecedented demand for the brands from new and loyal guests. The company reported record bookings, both in terms of rate and volume. Going forward, the management emphasized delivering long-term shareholder value through industry-leading global brands, innovative fleets and diverse destinations. The company anticipates achieving two Trifecta goals ahead of schedule.
Q4 Earnings & Revenues
During the fourth quarter of 2023, the company reported an adjusted earnings per share (EPS) of $1.25, beating the Zacks Consensus Estimate of $1.13. In the prior-year quarter, RCL had incurred an adjusted loss per share of $1.12.
Royal Caribbean Cruises Ltd. Price, Consensus and EPS Surprise
Quarterly revenues of $3.3 billion missed the consensus mark of $3.4 billion. In the prior-year quarter, RCL reported revenues of $2.6 billion. Increased demand (at higher prices) and continued strength in onboard revenues added to the positives.
Quarterly Highlights
In the fourth quarter of 2023, passenger ticket revenues amounted to $2.3 million, up from $1.7 billion in the prior-year quarter. Our estimate for passenger ticket revenues was $2.3 billion.
Onboard and other revenues increased to $1 billion, up from $0.9 billion reported in the year-ago quarter. Our estimate for Onboard and other revenues was $1 billion.
Total cruise operating expenses amounted to $1.9 billion, up 5.9% year over year. Our estimate for the metric was $2 billion.
Net yields rose 17.9% on a constant-currency basis compared with fourth-quarter 2019 levels. Net cruise costs, excluding fuel per APCD, rose 6.2% on a reported basis and 6.7% on a constant-currency basis compared with fourth-quarter 2019 figures.
Other Financial Information
As of Dec 31, 2023, RCL reported cash and cash equivalents of $0.5 billion compared with $1.9 billion as of Dec 31, 2022. As of Dec 31, long-term debt was $19.7 billion compared with $21.3 billion as of Dec 31, 2022.
Booking Update
During the fourth quarter, the company reported solid booking volumes concerning all key itineraries. It stated a rise in consumer spending onboard and pre-cruise purchases. It revealed that the metrics surpassed 2019 levels, courtesy of greater participation at higher prices. In fourth-quarter 2023, load factors were 105%.
The company is highly optimistic about the demand and pricing landscape for 2024. As of Dec 31, RCL had $5.3 billion in customer deposits compared with $4.2 billion as of Dec 31, 2022.
2023 Highlights
Total revenues in 2023 came in at $13.9 billion compared with $8.8 billion reported in 2022.
Adjusted EBITDA in 2023 came in at $4.5 billion compared with $0.7 billion reported in 2022.
In 2023, adjusted earnings per share (EPS) came in at $6.77 against $(7.50) reported in the previous year.
2024 Outlook
In the first quarter of 2024, Royal Caribbean expects depreciation and amortization expenses of $385-$395 million. Net interest expenses (excluding loss on extinguishment of debt) are estimated between $305 million and $315 million. Management estimates first-quarter 2024 adjusted EPS in the range of $1.10-$1.20.
For 2024, the company expects depreciation and amortization expenses to be in the range 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 $1,230-1,240 million. For 2024, the company anticipates Adjusted EPS in the range of $9.50-$9.70.
Net yields are anticipated to increase 5.3-7.3% (on a reported basis) and 5.25-7.25% (on a constant-currency basis) on a year-over-year basis.
Zacks Rank & Other Key Picks
Royal Caribbean currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for VIRC’s 2024 sales and earnings per share (EPS) indicates a rise of 15.7% and 32.4%, respectively, from the year-ago period’s levels.
H World Group Limited (HTHT - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 94.5%, on average. The stock has declined 33.7% in the past year.
The Zacks Consensus Estimate for HTHT’s 2024 sales and EPS indicates an improvement of 7.9% and 9.8%, respectively, from the year-ago period’s levels.
Carnival Corporation & plc (CCL - Free Report) carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 19.2%, on average. The stock has gained 46.2% in the past year.
The Zacks Consensus Estimate for CCL’s fiscal 2024 sales indicates a rise of 13.7% from the year-ago levels.
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Royal Caribbean (RCL) Q4 Earnings Top Estimates, Revenues Lag
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. However, the top and the bottom line increased on a year-over-year basis.
Jason Liberty, president and CEO of Royal Caribbean Group, highlighted the exceptional 2023 performance, witnessing unprecedented demand for the brands from new and loyal guests. The company reported record bookings, both in terms of rate and volume. Going forward, the management emphasized delivering long-term shareholder value through industry-leading global brands, innovative fleets and diverse destinations. The company anticipates achieving two Trifecta goals ahead of schedule.
Q4 Earnings & Revenues
During the fourth quarter of 2023, the company reported an adjusted earnings per share (EPS) of $1.25, beating the Zacks Consensus Estimate of $1.13. In the prior-year quarter, RCL had incurred an adjusted loss per share of $1.12.
Royal Caribbean Cruises Ltd. Price, Consensus and EPS Surprise
Royal Caribbean Cruises Ltd. price-consensus-eps-surprise-chart | Royal Caribbean Cruises Ltd. Quote
Quarterly revenues of $3.3 billion missed the consensus mark of $3.4 billion. In the prior-year quarter, RCL reported revenues of $2.6 billion. Increased demand (at higher prices) and continued strength in onboard revenues added to the positives.
Quarterly Highlights
In the fourth quarter of 2023, passenger ticket revenues amounted to $2.3 million, up from $1.7 billion in the prior-year quarter. Our estimate for passenger ticket revenues was $2.3 billion.
Onboard and other revenues increased to $1 billion, up from $0.9 billion reported in the year-ago quarter. Our estimate for Onboard and other revenues was $1 billion.
Total cruise operating expenses amounted to $1.9 billion, up 5.9% year over year. Our estimate for the metric was $2 billion.
Net yields rose 17.9% on a constant-currency basis compared with fourth-quarter 2019 levels. Net cruise costs, excluding fuel per APCD, rose 6.2% on a reported basis and 6.7% on a constant-currency basis compared with fourth-quarter 2019 figures.
Other Financial Information
As of Dec 31, 2023, RCL reported cash and cash equivalents of $0.5 billion compared with $1.9 billion as of Dec 31, 2022. As of Dec 31, long-term debt was $19.7 billion compared with $21.3 billion as of Dec 31, 2022.
Booking Update
During the fourth quarter, the company reported solid booking volumes concerning all key itineraries. It stated a rise in consumer spending onboard and pre-cruise purchases. It revealed that the metrics surpassed 2019 levels, courtesy of greater participation at higher prices. In fourth-quarter 2023, load factors were 105%.
The company is highly optimistic about the demand and pricing landscape for 2024. As of Dec 31, RCL had $5.3 billion in customer deposits compared with $4.2 billion as of Dec 31, 2022.
2023 Highlights
Total revenues in 2023 came in at $13.9 billion compared with $8.8 billion reported in 2022.
Adjusted EBITDA in 2023 came in at $4.5 billion compared with $0.7 billion reported in 2022.
In 2023, adjusted earnings per share (EPS) came in at $6.77 against $(7.50) reported in the previous year.
2024 Outlook
In the first quarter of 2024, Royal Caribbean expects depreciation and amortization expenses of $385-$395 million. Net interest expenses (excluding loss on extinguishment of debt) are estimated between $305 million and $315 million. Management estimates first-quarter 2024 adjusted EPS in the range of $1.10-$1.20.
For 2024, the company expects depreciation and amortization expenses to be in the range 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 $1,230-1,240 million. For 2024, the company anticipates Adjusted EPS in the range of $9.50-$9.70.
Net yields are anticipated to increase 5.3-7.3% (on a reported basis) and 5.25-7.25% (on a constant-currency basis) on a year-over-year basis.
Zacks Rank & Other Key Picks
Royal Caribbean currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Consumer Discretionary sector are as follows:
Virco Mfg. Corporation (VIRC - Free Report) sports a Zacks Rank #1 (Strong Buy). VIRC has a trailing four-quarter earnings surprise of 188.6% on average. VIRC’s shares have surged 146% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VIRC’s 2024 sales and earnings per share (EPS) indicates a rise of 15.7% and 32.4%, respectively, from the year-ago period’s levels.
H World Group Limited (HTHT - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 94.5%, on average. The stock has declined 33.7% in the past year.
The Zacks Consensus Estimate for HTHT’s 2024 sales and EPS indicates an improvement of 7.9% and 9.8%, respectively, from the year-ago period’s levels.
Carnival Corporation & plc (CCL - Free Report) carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 19.2%, on average. The stock has gained 46.2% in the past year.
The Zacks Consensus Estimate for CCL’s fiscal 2024 sales indicates a rise of 13.7% from the year-ago levels.