/Royal%20Caribbean%20Group%20sign%20by-%20JHVEPhoto%20via%20iStock.jpg)
With a market cap hovering around $90.8 billion, Florida-based Royal Caribbean Cruises Ltd. (RCL) sails at the forefront of the global vacation industry, operating a fleet of 67 ships across five brands that span all seven continents. Known for delivering memorable travel experiences, the company reaches millions of guests annually through its core cruise lines, including Royal Caribbean, Celebrity Cruises, and Silversea, while also expanding its presence on land with destinations such as Perfect Day at CocoCay and the Royal Beach Club Collection.
The company is expected to release its fiscal 2025 second-quarter earnings report on Thursday, July 24. Royal Caribbean Cruises is sailing into earnings season with high expectations. Analysts forecast a profit of $4.04 per share, marking a strong 25.9% jump from the $3.21 reported in the same quarter last year. The company has also built a solid track record, having outperformed Wall Street’s bottom-line estimates for four consecutive quarters.
Over the longer term, analysts forecast the company to report an EPS of $15.42 in fiscal 2025, representing a notable 30.7% increase from the $11.80 reported in fiscal 2024. The upward trend is expected to continue into fiscal 2026, with EPS projected to climb another 14.5% to $17.66.
Royal Caribbean’s stock has been riding a wave of remarkable momentum. Over the past year, shares have skyrocketed 115.3%, leaving the broader market in the dust. For comparison, the S&P 500 Index ($SPX) gained just 13.4%, while the Consumer Discretionary Select Sector SPDR Fund (XLY) rose 17.8% during the same period.
Royal Caribbean’s strong execution, innovative ship rollouts, and sharp revenue strategies continue to fuel robust demand and keep investors engaged. Yet, its fiscal Q1 2025 earnings, released on April 29, offered a mixed read. Revenue rose 7.3% year-over-year to $4 billion but came in just below Wall Street’s forecast. On the brighter side, profitability stole the show. Adjusted EPS soared a remarkable 53.1% to $2.71, beating expectations by 7.1% and reinforcing the company’s ability to deliver solid earnings even in the face of top-line pressure.
Wall Street’s outlook on Royal Caribbean remains overwhelmingly positive, with the stock anchored by a consensus “Strong Buy” rating overall. Among 24 analysts covering the stock, a majority of 18 analysts suggest a "Strong Buy," one recommends a "Moderate Buy,” and five give a “Hold” rating. As of writing, RCL stock is trading at a premium to its average analyst price target of $282.29.
On the date of publication, Anushka Mukherjee did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
