Royal Caribbean raises guidance on heated demand for cruises

By Claudia Assis

Bookings are 'significantly higher' than in the same period last year, cruise operator says

Royal Caribbean Group raised its earnings guidance for the year, thanks to "accelerating demand" and a strong start of the year for its cruises.

Royal Caribbean (RCL) shares rose more than 5% in the extended session Wednesday after ending the regular trading day down 0.2%.

"The company continues to be very encouraged about the demand and pricing environment for 2024," Royal Caribbean said. "Bookings have been significantly higher than during the same period last year."

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For 2024, all four quarters and all key products are booked ahead of the same time last year in both rate and volume, the company said. Consumer spending onboard also continues to exceed prior years "driven by greater participation at higher prices, indicating quality and healthy future demand."

"Since our last earnings call, robust demand for our vacation experiences has significantly exceeded our initial expectations," Chief Executive Jason Liberty said in a statement.

The company raised its 2024 adjusted EPS guidance by 40 cents to between $9.90 and $10.10.

About 15 cents of that full-year increase in adjusted EPS is driven by an improved revenue outlook for the first quarter of 2024, Royal Caribbean said.

Analysts expect the company to earn an adjusted $9.73 a share in the year.

Shares of Royal Caribbean have gained 60% in the past 12 months, compared with gains of around 25% for the S&P 500 index SPX.

Related: Carnival's stock is having a record year as cruise demand keeps increasing

-Claudia Assis

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02-21-24 1841ET

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