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Royal Caribbean (RCL) to Post Q3 Earnings: What's in Store?
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Royal Caribbean Group (RCL - Free Report) is scheduled to report third-quarter 2023 results on Oct 26 before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 15.2%.
Q3 Estimates
The Zacks Consensus Estimate for the third-quarter bottom line is pegged at $3.43 per share. In the prior-year quarter, RCL reported adjusted earnings per share of 26 cents. The consensus mark for revenues is pegged at $4.02 billion, suggesting a whopping 34.5% jump from a year ago.
Factors to Note
Royal Caribbean’s third-quarter performance is likely to have benefited from solid bookings with respect to North American and European sailings. Also, strong pricing (on closer-in-demand) and solid onboard spending bode well. An increase in ticket revenues, and onboard and other revenues are likely to have aided the top line.
Our model predicts passenger ticket revenues, and onboard and other revenues to improve 44.1% and 2% year over year to $2,911.4 million and $991.8 million, respectively. In 2023, the company anticipates solid guest generation from the North America region.
An improvement in load factors (thanks to a rise in close-in bookings at higher prices) is likely to have paved a path for yield improvements in the third quarter. Our model predicts third-quarter net yields to be $265.6 million (on a reported basis) and $267.2 million (constant-currency basis), up 34.2% and 33.7% year over year, respectively.
However, high inflationary and supply-chain challenges (related to fuel and food costs), and transitory costs related to health and safety protocols are likely to have negatively impacted the bottom line. Our model suggests total cruise operating expenses to increase 1.3% year over year to $1,980.8 million.
Royal Caribbean Cruises Ltd. Price and EPS Surprise
Our proven model predicts an earnings beat for Royal Caribbean this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Royal Caribbean has an Earnings ESP of +1.42%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Royal Caribbean has a Zacks Rank #3.
Other Stocks With the Favorable Combination
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these too have the right combination of elements to deliver an earnings beat this time around.
Shares of MGM Resorts have improved 7.2% in the past year. MGM’s earnings surpassed the consensus mark in three of the four quarters and missed once, the average surprise being 105.7%.
Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +4.23% and a Zacks Rank #3.
Shares of Marriott have jumped 21.4% in the past year. MAR’s earnings outpaced the consensus mark in each of the trailing four quarters, the average surprise being 5.5%.
Hilton Worldwide Holdings Inc. (HLT - Free Report) has an Earnings ESP of +5.35% and a Zacks Rank #2.
Shares of Hilton have climbed 13.2% in the past year. HLT’s earnings outshined the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 12.5%.
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Royal Caribbean (RCL) to Post Q3 Earnings: What's in Store?
Royal Caribbean Group (RCL - Free Report) is scheduled to report third-quarter 2023 results on Oct 26 before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 15.2%.
Q3 Estimates
The Zacks Consensus Estimate for the third-quarter bottom line is pegged at $3.43 per share. In the prior-year quarter, RCL reported adjusted earnings per share of 26 cents. The consensus mark for revenues is pegged at $4.02 billion, suggesting a whopping 34.5% jump from a year ago.
Factors to Note
Royal Caribbean’s third-quarter performance is likely to have benefited from solid bookings with respect to North American and European sailings. Also, strong pricing (on closer-in-demand) and solid onboard spending bode well. An increase in ticket revenues, and onboard and other revenues are likely to have aided the top line.
Our model predicts passenger ticket revenues, and onboard and other revenues to improve 44.1% and 2% year over year to $2,911.4 million and $991.8 million, respectively. In 2023, the company anticipates solid guest generation from the North America region.
An improvement in load factors (thanks to a rise in close-in bookings at higher prices) is likely to have paved a path for yield improvements in the third quarter. Our model predicts third-quarter net yields to be $265.6 million (on a reported basis) and $267.2 million (constant-currency basis), up 34.2% and 33.7% year over year, respectively.
However, high inflationary and supply-chain challenges (related to fuel and food costs), and transitory costs related to health and safety protocols are likely to have negatively impacted the bottom line. Our model suggests total cruise operating expenses to increase 1.3% year over year to $1,980.8 million.
Royal Caribbean Cruises Ltd. Price and EPS Surprise
Royal Caribbean Cruises Ltd. price-eps-surprise | Royal Caribbean Cruises Ltd. Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Royal Caribbean this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Royal Caribbean has an Earnings ESP of +1.42%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Royal Caribbean has a Zacks Rank #3.
Other Stocks With the Favorable Combination
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these too have the right combination of elements to deliver an earnings beat this time around.
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +3.03% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of MGM Resorts have improved 7.2% in the past year. MGM’s earnings surpassed the consensus mark in three of the four quarters and missed once, the average surprise being 105.7%.
Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +4.23% and a Zacks Rank #3.
Shares of Marriott have jumped 21.4% in the past year. MAR’s earnings outpaced the consensus mark in each of the trailing four quarters, the average surprise being 5.5%.
Hilton Worldwide Holdings Inc. (HLT - Free Report) has an Earnings ESP of +5.35% and a Zacks Rank #2.
Shares of Hilton have climbed 13.2% in the past year. HLT’s earnings outshined the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 12.5%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.