Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $5.75 for Q3 2025, an 11% increase year over year [10][25] - Net yields grew by 2.4% year over year, driven by strong demand across all key itineraries [10][23] - Full year adjusted earnings per share is now expected to be in the range of $15.58 to $15.63, reflecting a 32% year over year growth [12][29] Business Line Data and Key Metrics Changes - Capacity increased by 3% in Q3 2025, with nearly 2,500,000 vacations delivered, marking a 7% increase year over year [10][24] - The Caribbean represents 57% of the company's deployment for the year, with a 6% increase in capacity [26] - The company anticipates a 10% capacity growth in Q4 2025, driven by new ships and additional APCDs [11][26] Market Data and Key Metrics Changes - Book load factors for 2026 remain well within historical ranges at record rates, with booked APD growth at the high end of historical ranges [16][32] - The company expects Caribbean yields in Q4 to be up 37% compared to 2019 [26] - Europe is expected to account for 15% of capacity for the year, with strong booking positions as the European season wraps up [27] Company Strategy and Development Direction - The company is focused on building a vacation platform that leads the leisure market through innovative ships and exclusive destinations [6][7] - Plans to expand the exclusive land-based destination portfolio from two to eight by 2028 [7] - The company aims to capture a greater share of the $2 trillion global vacation market by enhancing customer experiences and loyalty [18][19] Management's Comments on Operating Environment and Future Outlook - Management noted strong consumer sentiment towards travel and leisure, with three-quarters of consumers intending to spend the same or more on vacations over the next twelve months [14] - The company is optimistic about the demand environment, with strong bookings and a powerful pipeline of strategic initiatives [13][15] - Despite some adverse weather impacts, the company expects total revenue to increase by approximately 13% year over year in Q4 [11][29] Other Important Information - The company ended the quarter with $6.8 billion in liquidity and adjusted leverage below 3x [35][36] - A 30% increase in the quarterly dividend to $1 per common share was authorized by the Board of Directors [37] - The company repurchased approximately 1.3 million shares during the quarter, with $345 million still available under the current authorization [37] Q&A Session Summary Question: Thoughts on 2026 guidance and yield growth - Management indicated that 2026 earnings are expected to have a $17 handle, with moderate yield growth anticipated [40][76] Question: Clarification on cost growth expectations - Management described cost growth as "anemic," including structural costs and new destination impacts [47][52] Question: Insights on global demand progression - Management noted strong demand across all markets, with a normalization in Canada and robust bookings from Europe [58][59] Question: Concerns about oversupply in the Caribbean - Management acknowledged increased supply but emphasized that it is manageable and that their differentiated assets help maintain demand [64] Question: Yield performance in 2025 - Management explained that yield deceleration in the second half of 2025 is influenced by tougher comparisons and fewer new hardware tailwinds [98]

Core Insights - Royal Caribbean reported revenue of $5.14 billion for the quarter ended September 2025, reflecting a 5.2% increase year-over-year, with EPS at $5.75 compared to $5.20 in the previous year [1] - The revenue fell slightly short of the Zacks Consensus Estimate of $5.17 billion, resulting in a surprise of -0.54%, while the EPS exceeded expectations by +1.23% [1] Financial Performance Metrics - Available passenger cruise days (APCD) were reported at 13,698.89 days, slightly below the five-analyst average estimate of 13,702.20 days [4] - Net yields were $301.58, compared to the average estimate of $302.77 [4] - The occupancy rate was reported at 112.1%, matching the four-analyst average estimate [4] - Passenger cruise days totaled 15,356.27 days, slightly below the four-analyst average estimate of 15,364.33 days [4] - Net cruise costs excluding fuel per APCD were $123.75, lower than the estimated $125.98 [4] - Net cruise costs per APCD were $145.44, compared to the average estimate of $147.73 [4] - The number of passengers carried was 2.47 million, below the average estimate of 2.56 million [4] - Onboard and other revenues reached $1.5 billion, in line with the average estimate, representing a year-over-year increase of +6.2% [4] - Passenger ticket revenues were $3.64 billion, slightly below the six-analyst average estimate of $3.66 billion, with a year-over-year change of +4.8% [4] Stock Performance - Over the past month, Royal Caribbean's shares have returned -2%, while the Zacks S&P 500 composite increased by +3.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Company Performance - Royal Caribbean Cruises' CEO discusses the cruise line's latest earnings and expectations for 2026 [1]

Core Viewpoint - Royal Caribbean reported a profit beat and raised its guidance, but the outlook fell short of some Wall Street expectations, leading to a sharp decline in shares during pre-market trading [1][2]. Financial Performance - The company had a strong third quarter, exceeding profit expectations and raising guidance for the year [2]. - Initial projections for 2026 suggest a revenue starting with a "17 handle," indicating positive growth expectations [3][4]. Booking Trends - There is a notable shift towards closer-in booking patterns, particularly among younger travelers who prefer shorter vacation experiences [5][6]. - Traditional longer bookings still exist for products like seven-night and European cruises, which tend to be booked further in advance [7]. Consumer Behavior - Royal Caribbean continues to see strong demand, with tens of thousands of bookings daily and approximately 170,000 to 180,000 guests on ships each day [9]. - Consumers are reportedly spending more on onboard experiences and have strong financial stability, indicating a willingness to invest in vacations [10]. International Demand - The company has managed to offset some challenges in inbound international tourism through its deployment strategies, with about 20% of guests coming from outside the U.S. for Caribbean cruises [12].

About this content About Sean Mason Sean Mason is a Senior Journalist at Proactive, having researched and written about Canadian and US equities for 20 years. Sean graduated from the University of Toronto with a BA in history and economics and has also passed the Canadian Securities Course. He previously worked at Investors Digest of Canada, Stockhouse, and SmallCapPower.com. Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and action ...

Group 1: US-Japan Relations and Rare Earth Deal - The US and Japan signed a framework agreement to secure the supply of rare earth elements, which are critical for technology and defense industries [2][20] - President Trump praised Japan's Prime Minister Sai Takahichi and expressed strong support for Japan's defense spending plans [3][20] - The agreement is seen as a strategic move to counter China's dominance in the rare earth market, where China controls approximately 90% of global supply [24] Group 2: Amazon Layoffs - Amazon announced plans to lay off around 14,000 workers as part of a strategy to streamline operations and reduce managerial layers [5][6] - The layoffs are focused on office roles rather than logistics or shipping positions, reflecting a broader trend in the tech industry towards flattening organizational structures [7][8] - This decision follows reports of Amazon's AI capabilities not meeting expectations, attributed to excessive organizational layers built during pandemic hiring [8] Group 3: PayPal and OpenAI Partnership - PayPal has signed a significant deal to become the first payment wallet integrated within ChatGPT, which is expected to open substantial business opportunities [9][10] - Following the announcement, PayPal's shares surged nearly 14% in pre-market trading, reflecting positive market sentiment [10] Group 4: Earnings Reports and Market Reactions - United Health reported Q3 results that exceeded Wall Street expectations and raised its earnings outlook for the year by $0.25 to at least $16.25 per share [11] - UPS also beat earnings expectations with adjusted EPS of $1.74, leading to a nearly 9% increase in pre-market shares [12] - Royal Caribbean's adjusted earnings guidance for the full year missed analyst estimates, causing shares to drop almost 7% in pre-market trading [13] Group 5: Federal Reserve Meeting - The Federal Reserve began a two-day meeting with expectations of a 25 basis point rate cut to be announced [15][52] - Market analysts suggest that the Fed is in a challenging position due to unclear economic data, with potential for multiple rate cuts through 2026 [17][18] Group 6: Apple and Supplier Developments - Apple is closely watched as it approaches a potential $4 trillion market cap, driven by strong sales of the new iPhone 17 [30][41] - Skywork Solutions is in talks to acquire Corvo for $8 billion, indicating consolidation among suppliers in the tech sector [31] - Foxconn announced a $1.37 billion investment to build a new AI supercomputing center, highlighting the industry's focus on AI advancements [32]

Summary of Key Points Group 1: United Health - United Health's stock is currently trading well, up approximately 2.6% [1] - The company reported earnings per share (EPS) of $2.92, down 59% from $7.15 last year, but above the estimate of $2.79 [2] - Sales reached $113.2 billion, exceeding the estimate of $113.1 billion and showing a 12.3% increase from around $101 billion last year [3] - The medical loss ratio improved, remaining below 90%, which was better than expected [3] - United Health raised its fiscal year guidance to $16.25, indicating positive outlooks for healthcare utilization and rate recalibrations [4] Group 2: Royal Caribbean - Royal Caribbean's stock is under pressure, down about 7.8% [5] - The company reported EPS of $5.75, an 11% increase from $5.20 last year, beating estimates of $5.67 [6] - Sales were reported at $5.14 billion, slightly below the estimate of $5.16 billion, but still up 4.3% year-over-year [6] - Guidance for Q4 EPS was slightly reduced to a high-end estimate of $2.79, which contributed to the stock's pressure [7] Group 3: D.R. Horton - D.R. Horton’s stock is down about 3% following its report [10] - The company missed EPS estimates, reporting $3.34, down 22% from last year's adjusted EPS of $3.92 [11] - Sales were $9.69 billion, exceeding estimates of $9.45 billion but down about 3% from $10 billion last year [11] - Net sales orders increased by 5%, but unit prices only rose by about 3%, indicating pricing pressures [12] - The company widened its revenue guidance for the fiscal year to a range of $33.5 billion to $35 billion, which may create some pressures [13] - D.R. Horton announced a $2.5 billion share buyback, providing some support to its equity [13]

Q3 2025 Performance - Load Factor reached 112%[8] - Net Yield Growth vs 2024 was 24% in constant currency[8] - NCCx Growth vs 2024 was 43% in constant currency[8] - Adjusted EBITDA was $23 billion, a 7% increase compared to 2024[8] - Adjusted EBITDA Margin was 446%[8] - Adjusted Earnings Per Share reached $575, an 11% increase compared to 2024[8] - Operating Cash Flow was $15 billion[8] FY 2025 Guidance - APCDs are projected to be 533 million[13] - Net Yield Growth vs 2024 is expected to be between 35% and 40% in constant currency[13] - NCCx Growth vs 2024 is expected to be approximately (01%) in constant currency[13] - Adjusted Earnings Per Share is projected to be between $1558 and $1563[13] Q4 2025 Guidance - APCDs are projected to be 14 million[17] - Net Yield Growth vs 2024 is expected to be between 22% and 27% in constant currency[17] - NCCx Growth vs 2024 is expected to be between (66%) and (61%) in constant currency[17] - Adjusted Earnings Per Share is projected to be between $274 and $279[17] Additional Information - The company expects 32% year-over-year growth in Adjusted EPS[15]

Core Insights - Royal Caribbean reported quarterly earnings of $5.75 per share, exceeding the Zacks Consensus Estimate of $5.68 per share, and up from $5.2 per share a year ago, representing an earnings surprise of +1.23% [1] - The company generated revenues of $5.14 billion for the quarter ended September 2025, which was below the Zacks Consensus Estimate by 0.54%, and an increase from $4.89 billion year-over-year [2] - Royal Caribbean's stock has increased by approximately 38.8% since the beginning of the year, outperforming the S&P 500's gain of 16.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.86 on revenues of $4.28 billion, and for the current fiscal year, it is $15.66 on revenues of $17.98 billion [7] - The estimate revisions trend for Royal Caribbean was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Leisure and Recreation Services industry, to which Royal Caribbean belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - Royal Caribbean's stock is expected to decline due to another revenue miss, despite a profit beat and increasing demand for cruises [1] Revenue Performance - The company reported a revenue miss, which overshadowed the positive profit results [1] Profitability - Royal Caribbean achieved a profit beat, indicating strong operational performance [1] Demand Trends - There is an accelerating demand for cruises, suggesting a positive outlook for the industry despite the revenue miss [1]