We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Royal Caribbean (RCL) Tops Q2 Earnings On Strong Demand, View Up
Read MoreHide Full Article
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported impressive second-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. RCL benefited from stronger pricing on close-in demand and continued strength in onboard revenue.
During the quarter, the company achieved its Trifecta financial goals (18 months ahead of schedule), strengthened its balance sheet and reinstated dividends, enhancing shareholders’ value. The company's board of directors declared a quarterly dividend of $0.40 per share, payable on Oct 11, 2024, to shareholders of record at the close of business on Sep 20, 2024.
The company is focused on driving strong shareholder returns by delivering a lifetime of vacations and capturing a larger share of the rapidly growing $1.9 trillion global vacation market. It focuses on disciplined expansion, moderate yield growth, and cost control to achieve the same.
RCL raised its 2024 adjusted earnings per share (EPS) guidance, reflecting an exceptional WAVE season and a strong booking environment.
Q2 Earnings & Revenues
Royal Caribbean Cruises Ltd. Price, Consensus and EPS Surprise
During second-quarter 2024, the company reported an adjusted EPS of $3.21, beating the Zacks Consensus Estimate of $2.77. In the prior-year quarter, RCL reported an adjusted EPS of %1.82.
Quarterly revenues of $4.11 billion outpaced the consensus mark of $4 billion. In the prior-year quarter, RCL reported revenues of $3.5 billion. A rise in close-in demand (at higher prices) and continued strength in onboard revenues added to the positives.
Quarterly Highlights
In first-quarter 2024, passenger ticket revenues amounted to $2.88 billion, up from $2.4 billion in the prior-year quarter. Our estimate for passenger ticket revenues was $2.6 billion.
Onboard and other revenues increased to $1.2 billion, up from 1 million reported in the year-ago quarter. Our estimate for the metric was $1.3 billion.
Total cruise operating expenses amounted to $2.2 billion, up 10.1% year over year. Our estimate for the metric was $2.05 billion.
Net yields rose 13.3% on a constant-currency (cc) basis compared with second-quarter 2023 levels. Net cruise costs, excluding fuel per APCD, rose 5.5% on a reported basis and 5.7% at cc compared with second-quarter 2023 figures.
Other Financial Information
As of Jun 30, 2024, RCL reported cash and cash equivalents of $391 million compared with $437 million as of Mar 31, 2024. As of Jun 30, long-term debt was $19.8 billion compared with $18.9 billion as of Mar 31, 2024.
Booking Update
During the second quarter, the company reported solid booking volumes across all key itineraries. It also stated a rise in consumer spending onboard and pre-cruise purchases (exceeding 2023 levels) driven by higher participation at increased prices. In second-quarter 2024, load factors were 108%.
The company is highly optimistic about the demand and pricing landscape for 2024. RCL expects a higher yield in 2024, backed by increased onboard revenue across key products and strong performance across European and Alaskan itineraries.
As of Jun 30, 2024, RCL had $6.2 billion in customer deposits compared with $6 billion as of Mar 31, 2024.
Q3 & 2024 Outlook
In third-quarter 2024, RCL expects depreciation and amortization expenses of $405-$415 million. Net interest expenses (excluding loss on extinguishment of debt) are projected between $275 million and 285 million. Management estimates adjusted EPS of $4.90-$5.
For 2024, the company expects depreciation and amortization expenses to be in the range of $1,600-$1,610 million. Net interest expenses (excluding loss on extinguishment of debt) for the year are expected to be in the range of $1,130-1,140 million, down from the earlier guidance of $1,140-1,150 million.
The company expects net yields to increase by 10.4-10.9% (on a reported and at cc) on a year-over-year basis. Earlier, the company projected net yields to rise 9-10% (on a reported and constant-currency basis) year over year.
For 2024, the company anticipates Adjusted EPS in the range of $11.35-$11.45, up from the prior projection of $10.70-$10.90. The Zacks Consensus Estimate for 2024 earnings is pegged at $11.14.
Carnival Corporation & plc (CCL - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was primarily backed by sustained demand strength and increased booking volumes. The management expects net yields to exceed 10% and drive double-digit returns on invested capital.
The quarter’s passenger ticket revenues amounted to $3.8 billion, up from $3.1 billion reported in the prior-year quarter. CCL reported strong booking momentum for 2025, with record volumes surpassing 2024 levels in price and occupancy. It reported strength in pricing for the North America and Australia and Europe segments for the third and the fourth quarter of 2024 on a year-over-year basis. Its efforts to extend the booking curve and leverage favorable pricing trends resulted in record cumulative bookings for the remainder of 2024, with occupancy rates above 2023 levels.
Mattel, Inc. (MAT - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.
The company experienced robust bottom-line performance, propelled mainly by significant gross margin expansion and growth in adjusted EBITDA. MAT is well positioned for the second half with new product innovation and increased retail support. The company is in a strong financial position to execute its strategy to expand its IP-driven toy business and expand entertainment offerings. For 2024, management continues to expect net sales to be comparable with the prior year at cc. It also anticipates 2024 adjusted EPS to be between $1.35 and $1.45 compared with $1.23 in 2023.
American Outdoor Brands, Inc. (AOUT - Free Report) reported mixed fourth-quarter fiscal 2024 (ended Apr 30, 2024) results. It reported break-even earnings, which missed the Zacks Consensus Estimate, while net sales topped the same. The top line rose year over year, but the bottom line declined.
The quarterly results reflect growth in its outdoor lifestyle and shooting sports categories on the back of new product launches across its several brands. The footprint expansion in Canada also bodes well for the company, allowing it to offer outdoor brands to Canadian consumers. However, the bottom line was negatively impacted by the amortization of tariff and freight costs, higher promotional product discounts and an immaterial adjustment to a tariff drawback claim submitted in the fiscal 2022.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Royal Caribbean (RCL) Tops Q2 Earnings On Strong Demand, View Up
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported impressive second-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. RCL benefited from stronger pricing on close-in demand and continued strength in onboard revenue.
During the quarter, the company achieved its Trifecta financial goals (18 months ahead of schedule), strengthened its balance sheet and reinstated dividends, enhancing shareholders’ value. The company's board of directors declared a quarterly dividend of $0.40 per share, payable on Oct 11, 2024, to shareholders of record at the close of business on Sep 20, 2024.
The company is focused on driving strong shareholder returns by delivering a lifetime of vacations and capturing a larger share of the rapidly growing $1.9 trillion global vacation market. It focuses on disciplined expansion, moderate yield growth, and cost control to achieve the same.
RCL raised its 2024 adjusted earnings per share (EPS) guidance, reflecting an exceptional WAVE season and a strong booking environment.
Q2 Earnings & Revenues
Royal Caribbean Cruises Ltd. Price, Consensus and EPS Surprise
Royal Caribbean Cruises Ltd. price-consensus-eps-surprise-chart | Royal Caribbean Cruises Ltd. Quote
During second-quarter 2024, the company reported an adjusted EPS of $3.21, beating the Zacks Consensus Estimate of $2.77. In the prior-year quarter, RCL reported an adjusted EPS of %1.82.
Quarterly revenues of $4.11 billion outpaced the consensus mark of $4 billion. In the prior-year quarter, RCL reported revenues of $3.5 billion. A rise in close-in demand (at higher prices) and continued strength in onboard revenues added to the positives.
Quarterly Highlights
In first-quarter 2024, passenger ticket revenues amounted to $2.88 billion, up from $2.4 billion in the prior-year quarter. Our estimate for passenger ticket revenues was $2.6 billion.
Onboard and other revenues increased to $1.2 billion, up from 1 million reported in the year-ago quarter. Our estimate for the metric was $1.3 billion.
Total cruise operating expenses amounted to $2.2 billion, up 10.1% year over year. Our estimate for the metric was $2.05 billion.
Net yields rose 13.3% on a constant-currency (cc) basis compared with second-quarter 2023 levels. Net cruise costs, excluding fuel per APCD, rose 5.5% on a reported basis and 5.7% at cc compared with second-quarter 2023 figures.
Other Financial Information
As of Jun 30, 2024, RCL reported cash and cash equivalents of $391 million compared with $437 million as of Mar 31, 2024. As of Jun 30, long-term debt was $19.8 billion compared with $18.9 billion as of Mar 31, 2024.
Booking Update
During the second quarter, the company reported solid booking volumes across all key itineraries. It also stated a rise in consumer spending onboard and pre-cruise purchases (exceeding 2023 levels) driven by higher participation at increased prices. In second-quarter 2024, load factors were 108%.
The company is highly optimistic about the demand and pricing landscape for 2024. RCL expects a higher yield in 2024, backed by increased onboard revenue across key products and strong performance across European and Alaskan itineraries.
As of Jun 30, 2024, RCL had $6.2 billion in customer deposits compared with $6 billion as of Mar 31, 2024.
Q3 & 2024 Outlook
In third-quarter 2024, RCL expects depreciation and amortization expenses of $405-$415 million. Net interest expenses (excluding loss on extinguishment of debt) are projected between $275 million and 285 million. Management estimates adjusted EPS of $4.90-$5.
For 2024, the company expects depreciation and amortization expenses to be in the range of $1,600-$1,610 million. Net interest expenses (excluding loss on extinguishment of debt) for the year are expected to be in the range of $1,130-1,140 million, down from the earlier guidance of $1,140-1,150 million.
The company expects net yields to increase by 10.4-10.9% (on a reported and at cc) on a year-over-year basis. Earlier, the company projected net yields to rise 9-10% (on a reported and constant-currency basis) year over year.
For 2024, the company anticipates Adjusted EPS in the range of $11.35-$11.45, up from the prior projection of $10.70-$10.90. The Zacks Consensus Estimate for 2024 earnings is pegged at $11.14.
Zacks Rank & Key Picks
Royal Caribbean carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Peer Releases
Carnival Corporation & plc (CCL - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was primarily backed by sustained demand strength and increased booking volumes. The management expects net yields to exceed 10% and drive double-digit returns on invested capital.
The quarter’s passenger ticket revenues amounted to $3.8 billion, up from $3.1 billion reported in the prior-year quarter. CCL reported strong booking momentum for 2025, with record volumes surpassing 2024 levels in price and occupancy. It reported strength in pricing for the North America and Australia and Europe segments for the third and the fourth quarter of 2024 on a year-over-year basis. Its efforts to extend the booking curve and leverage favorable pricing trends resulted in record cumulative bookings for the remainder of 2024, with occupancy rates above 2023 levels.
Mattel, Inc. (MAT - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.
The company experienced robust bottom-line performance, propelled mainly by significant gross margin expansion and growth in adjusted EBITDA. MAT is well positioned for the second half with new product innovation and increased retail support. The company is in a strong financial position to execute its strategy to expand its IP-driven toy business and expand entertainment offerings. For 2024, management continues to expect net sales to be comparable with the prior year at cc. It also anticipates 2024 adjusted EPS to be between $1.35 and $1.45 compared with $1.23 in 2023.
American Outdoor Brands, Inc. (AOUT - Free Report) reported mixed fourth-quarter fiscal 2024 (ended Apr 30, 2024) results. It reported break-even earnings, which missed the Zacks Consensus Estimate, while net sales topped the same. The top line rose year over year, but the bottom line declined.
The quarterly results reflect growth in its outdoor lifestyle and shooting sports categories on the back of new product launches across its several brands. The footprint expansion in Canada also bodes well for the company, allowing it to offer outdoor brands to Canadian consumers. However, the bottom line was negatively impacted by the amortization of tariff and freight costs, higher promotional product discounts and an immaterial adjustment to a tariff drawback claim submitted in the fiscal 2022.