Royal Caribbean Group (NYSE:RCL) shares fell more than 4% in pre-market trading on Tuesday after the cruise operator reported second-quarter revenue that narrowly missed analysts’ expectations, despite delivering stronger-than-expected earnings and raising its full-year outlook.
Revenue for the quarter increased 6% from a year earlier to $4.8 billion, just below the market consensus estimate of $4.81 billion.
Profit Exceeds Expectations and Full-Year Guidance Raised
Adjusted earnings per share came in at $4.21 for the second quarter, comfortably ahead of the analyst consensus estimate of $3.93.
Following the stronger quarterly performance, Royal Caribbean increased its full-year adjusted earnings guidance to a range of $17.73 to $17.87 per share.
The midpoint of the updated forecast, $17.80 per share, is above the analyst consensus estimate of $17.34.
Strong Demand Supports Quarterly Performance
The company said second-quarter results benefited from robust close-in booking demand, lower operating costs and favourable contributions from its joint ventures.
However, management noted that prolonged geopolitical tensions had a modest impact on bookings for selected cruise itineraries.
“The strong second quarter performance demonstrates the continued strength of our brands, the appeal of our vacation experiences, and the momentum in our business,” said Jason Liberty, Chairman and CEO. “We expect another year of approximately double-digit growth in revenue and earnings, driven by consumers’ preference for our leading brands.”
Third-Quarter Outlook Remains Positive
For the third quarter, Royal Caribbean expects adjusted earnings per share to be between $6.26 and $6.36.
The company forecasts total revenue growth of approximately 8%, while net yields are expected to remain broadly unchanged compared with 2025.
Net cruise costs excluding fuel per available passenger cruise day are projected to decline by between 1.2% and 1.7% on a reported basis, reflecting continued cost discipline.
Royal Caribbean stock price
