Yahoo Finance Royal Caribbean (RCL) Tops Q1 Earnings Estimates, Ups '24 View
Royal Caribbean Cruises Ltd. RCL reported stellar first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
RCL benefited from robust demand, strong pricing (on closer-in demand), solid onboard spending and favorable timing of expenses. The company also raised its 2024 adjusted earnings per share (EPS) guidance on the back of an exceptional WAVE season and continued strong demand.
Following the results, the stock moved up 2.4% in the pre-market trading session.
Q1 Earnings & Revenues
During the first quarter of 2024, the company reported an adjusted EPS of $1.77, beating the Zacks Consensus Estimate of $1.33. In the prior-year quarter, RCL incurred an adjusted loss per share of 23 cents.
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 $3.7 billion outpaced the consensus mark of $3.6 billion. In the prior-year quarter, RCL reported revenues of $2.9 billion. A rise in close-in demand (at higher prices) and continued strength in onboard revenues added to the positives.
Quarterly Highlights
In the first quarter of 2024, passenger ticket revenues amounted to $2.5 billion, up from $1.9 billion in the prior-year quarter. Our estimate for passenger ticket revenues was $2.2 billion.
Onboard and other revenues increased to $1.2 billion, up from $989 million reported in the year-ago quarter. The metric was in line with our estimate.
Total cruise operating expenses amounted to $2.1 billion, up 14.7% year over year. Our estimate for the metric was $1.9 billion.
Net yields rose 19.3% on a constant-currency basis compared with first-quarter 2023 levels. Net cruise costs, excluding fuel per APCD, rose 4.2% on a reported basis and 4.1% on a constant-currency basis compared with first-quarter 2023 figures.
Other Financial Information
As of Mar 31, 2024, RCL reported cash and cash equivalents of $437 million compared with $497 million as of Dec 31, 2023. As of Mar 31, long-term debt was $18.9 billion compared with $19.7 billion as of Dec 31, 2023.
Booking Update
During the first quarter, the company reported solid booking volumes concerning all key itineraries. It stated a rise in consumer spending onboard and pre-cruise purchases. The company continues to be in a record-booked position, surpassing prior-year levels, courtesy of greater participation at higher prices. In first-quarter 2024, load factors were 107%.
The company is highly optimistic about the demand and pricing landscape for 2024. As of Mar 31, 2024, RCL had $6 billion in customer deposits compared with $5.3 billion as of Dec 31, 2023.
Q2 & 2024 Outlook
In the second quarter of 2024, Royal Caribbean expects depreciation and amortization expenses of $390-$400 million. Net interest expenses (excluding loss on extinguishment of debt) are projected between $270 million and 280 million. Management estimates adjusted EPS of $2.65-$2.75. The Zacks Consensus Estimate is pegged at $2.38.
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 $1,140-1,150 million, down from the earlier guidance of $1,230-1,240 million. For 2024, the company anticipates Adjusted EPS in the range of $10.70-$10.90, up from the prior projection of $9.50-$9.70. The Zacks Consensus Estimate for 2024 earnings is pegged at $10.06.
Net yields are now anticipated to increase by 9-10% (on a reported and constant-currency basis) on a year-over-year basis. Earlier, the company had projected net yields to grow 5.3%-7.3% (on a reported basis) and 5.25%-7.25% (at constant currency) compared with 2023 levels.
Zacks Rank & Recent Consumer Discretionary Releases
Royal Caribbean currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Las Vegas Sands Corp. LVS reported impressive first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate and increasing on a year-over-year basis.
The quarterly results reflected solid growth in Macao and Singapore. The company witnessed ongoing recovery in travel and progress in tourism spending. Singapore’s Marina Bay Sands demonstrated a record financial and operational performance. The introduction of new suite options and improved services positions the company well for enhanced airlift capacity and continuous recovery in travel and tourism spending, especially from China and the broader region.
Mattel, Inc. MAT reported first-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. The top line missed the consensus estimate for the second straight quarter.
The company experienced robust bottom-line performance, largely propelled by increased margins and the repurchase of $100 million worth of shares during the quarter, and remained aligned with its annual targets. It anticipates ongoing advantages from the Optimizing for Profitable Growth initiative, aiming for $60 million in cost reductions in 2024 and a cumulative $200 million by 2026.
Hilton Worldwide Holdings Inc. HLT reported solid first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate and rising year over year.
The company's performance was backed by notable improvements in revenue per available room (RevPAR), attributed to higher occupancy rates and average daily rates (ADR). It also benefited from its fee-based business model and robust development initiatives. Hilton maintained its momentum in signings, starts, and openings, reflecting a solid pipeline. Based on the growth trajectory observed thus far, the company is optimistic about sustaining the momentum in the near future.
Want 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
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Mattel, Inc. (MAT) : Free Stock Analysis Report
Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report
Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report
