Cruise vacation company Royal Caribbean (NYSE:RCL) will be reporting earnings tomorrow before the bell. Here’s what you need to know.
Royal Caribbean met analysts’ revenue expectations last quarter, reporting revenues of $3.76 billion, up 12.9% year on year. It was a satisfactory quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations.
Is Royal Caribbean a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Royal Caribbean’s revenue to grow 7.7% year on year to $4.02 billion, slowing from the 29.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.53 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Royal Caribbean has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Royal Caribbean’s peers in the travel and vacation providers segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 7.5%, beating analysts’ expectations by 0.9%, and United Airlines reported revenues up 5.4%, topping estimates by 0.6%. Carnival traded up 1.1% following the results while United Airlines’s stock price was unchanged.
Read our full analysis of Carnival’s results here and United Airlines’s results here.
Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. While some of the travel and vacation providers stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.7% on average over the last month. Royal Caribbean is up 3.2% during the same time and is heading into earnings with an average analyst price target of $265.62 (compared to the current share price of $212).
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