Royal Caribbean (RCL) Reports Earnings Tomorrow: What To Expect

Cruise vacation company Royal Caribbean (NYSE:RCL) will be announcing earnings results this Thursday morning. Here’s what you need to know.

Royal Caribbean missed analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $5.14 billion, up 5.2% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations. It reported 15.36 million passenger cruise days, up 3.9% year on year.

Is Royal Caribbean a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Royal Caribbean’s revenue to grow 13.4% year on year to $4.26 billion, in line with the 12.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.80 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 six times over the last two years.

Looking at Royal Caribbean’s peers in the travel and vacation providers segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 6.6%, missing analysts’ expectations by 0.6%, and United Airlines reported revenues up 4.8%, in line with consensus estimates. Carnival traded up 13.6% following the results while United Airlines was also up 2.2%.

Read our full analysis of Carnival’s results here and United Airlines’s results here.

Investors in the travel and vacation providers segment have had steady hands going into earnings, with share prices flat over the last month. Royal Caribbean is up 2.8% during the same time and is heading into earnings with an average analyst price target of $332.21 (compared to the current share price of $290.15).

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