"We are well on our way to achieving our Perfecta financial targets by the end of 2027. As we look beyond 2027, we see another step change in growth as we deepen our moat with a powerful pipeline of incredible new ships, the ramp-up of our highly differentiated new destinations and river cruising, and continued investments in disruptive technology, personalization and loyalty," Liberty added. Second Quarter 2025: Full Year 2025 Outlook: • Load factor in the second quarter was 110%. • Gross Margin Yields wer ...

Financial Performance - Royal Caribbean Group reported second quarter 2025 EPS of $4.41 and Adjusted EPS of $4.38, exceeding guidance due to strong demand and lower costs [1][4] - Net Income for the second quarter was $1.2 billion, compared to $0.9 billion in the same period last year, with total revenues of $4.5 billion and Adjusted EBITDA of $1.9 billion [4][42] - The company increased its full year 2025 Adjusted EPS guidance to a range of $15.41 to $15.55, driven by better-than-expected second quarter performance [1][11] Operational Highlights - Capacity for the second quarter increased by 5.8% year-over-year, serving 2.3 million guests, a 10% increase from the previous year [5][43] - Gross Margin Yields rose by 11.0% and Net Yields increased by 5.3% year-over-year, with a load factor of 110%, up two percentage points [5][11] - Bookings for new ships Star of the Seas and Celebrity Xcel are performing well, with strong early demand for Royal Beach Club Paradise Island [7][8] Strategic Outlook - The company is on track to achieve its Perfecta financial targets by the end of 2027, with plans for new ships and differentiated destinations [3][9] - Royal Caribbean Group aims to capture a larger share of the $2 trillion global vacation market by adapting to evolving consumer preferences [9][10] - The third quarter is expected to see a capacity increase of 2.9% compared to the same period last year, with anticipated Net Yield growth of 2.3% to 2.8% [10][11] Liquidity and Financing - As of June 30, 2025, the company's liquidity position was $7.1 billion, reflecting a strong financial position and investment-grade ratings from major credit agencies [16][17] - The company amended and upsized its revolving credit facilities to $6.4 billion, extending the maturity of one facility to October 2030 [17] Capital Expenditures - Capital expenditures for 2025 are expected to be approximately $5 billion, primarily for new ship orders and land-based initiatives [18][19] - Capacity changes for 2025 are projected at 5.5%, with further increases expected in subsequent years [19]

Financial Performance - Royal Caribbean Group reported second quarter 2025 EPS of $4.41 and Adjusted EPS of $4.38, exceeding guidance due to strong demand and lower costs [1][4][6] - Net income for the second quarter was $1.2 billion, compared to $0.9 billion in the same period last year, with total revenues of $4.5 billion and Adjusted EBITDA of $1.9 billion [4][42] - The company increased its full year 2025 Adjusted EPS guidance to a range of $15.41 to $15.55, driven by better-than-expected second quarter performance [1][11] Operational Highlights - Capacity for the second quarter increased by 5.8% year-over-year, serving 2.3 million guests, a 10% increase from the previous year [5][43] - Gross Margin Yields rose by 11.0% and Net Yields increased by 5.3% year-over-year, with a load factor of 110%, up two percentage points from the prior year [5][11] - Bookings for new ships Star of the Seas and Celebrity Xcel are performing well, with strong early demand for Royal Beach Club Paradise Island [8][9] Future Outlook - The company anticipates a 2.9% increase in capacity for the third quarter of 2025, with expected Net Yields growth of 2.3% to 2.8% [10][11] - Full year 2025 capital expenditures are projected to be approximately $5 billion, primarily for new ship orders and land-based initiatives [18][19] - The company aims to achieve its Perfecta financial targets by the end of 2027, with a focus on growth through new ships and differentiated destinations [3][33] Liquidity and Financing - As of June 30, 2025, the company's liquidity position was $7.1 billion, reflecting strong financial health and investment-grade ratings from major credit agencies [16][17] - The company amended and upsized its unsecured revolving credit facilities to $6.4 billion, extending the maturity of one facility to October 2030 [17] Market Strategy - The company is focused on delivering exceptional value to guests and shareholders, adapting to evolving consumer preferences for more frequent and experience-driven travel [2][9] - The strategy includes a robust pipeline of new ships and investments in technology and loyalty programs to enhance guest experiences [3][9]

Core Insights - Royal Caribbean Cruises Ltd. (RCL) is set to release its second-quarter 2025 results on July 29, with an expected earnings per share (EPS) of $4.10, reflecting a 27.7% increase from $3.21 in the same quarter last year [1][5] - The consensus estimate for second-quarter revenues is $4.55 billion, indicating a 10.7% growth year-over-year [5] Earnings Estimates - The Zacks Consensus Estimate for RCL's EPS has increased by 1.5% over the past 60 days [1] - The earnings surprise history shows that RCL has outperformed the Zacks Consensus Estimate in the last four quarters, with an average surprise of 8.7% [5][7] Revenue and Growth Factors - Continued strength in close-in demand, strong pricing across key itineraries, and growing onboard revenue contributions are expected to support RCL's second-quarter performance [11] - The introduction of new vessels like Icon of the Seas and Utopia of the Seas is anticipated to positively impact yields, with expected yield growth of 4.3% to 4.8% year-over-year [13] - Passenger ticket revenues are projected to rise 11.1% year-over-year to $3.2 billion, while onboard and other revenues are expected to increase by 6.9% to $1.3 billion [14] Margin Expectations - Operating margins are predicted to expand by 150 basis points year-over-year to 28.2%, supported by scale efficiencies and effective cost management [15] - Net cruise costs excluding fuel are expected to rise by 3.7% to 4.2% year-over-year due to dry dock activity and new ship ramp-up costs [16] Stock Performance and Valuation - RCL shares have increased by 61.5% over the past three months, outperforming the Zacks Leisure and Recreation Services industry, which rose by 29.7% [18] - The stock is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 20.76X, above the industry average of 20.20X [21] Strategic Focus - RCL aims to capture a larger share of the $2 trillion global vacation market through strategic fleet expansion and premium onboard offerings [23] - The company’s diversified deployment strategy, particularly in high-demand regions like the Caribbean, is expected to support continued yield growth [23]

Core Viewpoint - Analysts project that Royal Caribbean (RCL) will report quarterly earnings of $4.10 per share, reflecting a year-over-year increase of 27.7%, with revenues expected to reach $4.55 billion, a 10.7% increase from the same quarter last year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted downward by 1.6%, indicating a reassessment by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts estimate 'Revenues- Onboard and other' to be $1.33 billion, marking a 9% increase from the previous year [5]. - 'Revenues- Passenger ticket' is projected to reach $3.21 billion, reflecting an 11.1% increase from the year-ago quarter [5]. Operational Metrics - The estimated 'Available Passenger Cruise Days (APCD)' is projected at 12,923 days, up from 12,233 days in the same quarter last year [6]. - The 'Occupancy Rate' is expected to be 109.6%, compared to 108.2% a year ago [6]. - 'Passenger Cruise Days' are anticipated to reach 14,168 days, an increase from 13,230 days in the previous year [6]. Cost Projections - 'Net Cruise Costs Excluding Fuel per APCD' is expected to be $129.25, up from $123.65 in the same quarter last year [7]. - 'Net Cruise Costs per APCD' is projected at $151.33, compared to $146.70 in the same quarter last year [7]. Passenger Estimates - The consensus among analysts is that 'Passengers Carried' will reach 2.34 million, an increase from 2.04 million a year ago [8]. Stock Performance - Shares of Royal Caribbean have increased by 24.1% in the past month, outperforming the Zacks S&P 500 composite, which rose by 5.7% [8].

Industry Performance & Trends - The Invesco Leisure and Entertainment ETF has outperformed the broader market over the last three months [1] - Cruise industry booking volumes have normalized, growing at a low to mid single-digit percentage year-over-year, compared to roughly 20% growth entering the year [5] - Consumer confidence is down, contributing to booking trends more similar to pre-COVID levels [8] - Softening is being observed in different parts of the travel trade after several years of strong results [9] Company Specific Analysis (Royal Caribbean) - Royal Caribbean stock has had a great run, outperforming in the past two years, including an 83% increase in the last three months [1][3] - Truth Securities is downgrading Royal Caribbean to "hold" due to normalization in the cruise industry and high valuations [2][5] Investment Opportunities - Norwegian Cruise Lines is considered a catch-up name and an underperformer within the cruise sector [10][11] - Hyatt Hotels is mentioned as a hotel chain that hasn't performed as well as Hilton, suggesting potential relative value [10][11] Underlying Travel Trends - Research indicates underlying travel trends have been mediocre and lethargic [10]

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Have you been paying attention to shares of Royal Caribbean (RCL) ? Shares have been on the move with the stock up 29.2% over the past month. The stock hit a new 52-week high of $344.62 in the previous session. Royal Caribbean has gained 48.3% since the start of the year compared to the 11.3% move for the Zacks Consumer Discretionary sector and the 10.9% return for the Zacks Leisure and Recreation Services industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises ...

Core Insights - Royal Caribbean has officially welcomed the new ship, Star of the Seas, which is set to debut in August 2025 in Port Canaveral, Florida, marking a significant milestone in family vacation experiences [1][2][3] Group 1: Ship Details and Features - Star of the Seas is part of the Icon Class and represents a new era of family vacations, featuring innovative designs and engineering feats such as the AquaDome and record-breaking waterslides [3][4][6] - The ship will offer over 40 dining, drinking, and entertainment options across eight distinct neighborhoods, enhancing the vacation experience for families [4][5] - Star will be the third ship in Royal Caribbean's fleet powered by liquefied natural gas (LNG), contributing to the company's environmental initiatives aimed at achieving a net-zero cruise ship by 2035 [6] Group 2: Upcoming Developments - Royal Caribbean is expanding its vacation offerings with new destinations, including the Royal Beach Club Paradise Island in December 2025 and additional locations in Cozumel and Mexico by 2027 [7] - The company continues to innovate in the cruise industry, focusing on creating unforgettable experiences for families and vacationers [3][9]

Company Performance - Royal Caribbean (RCL) closed at $333.57, with a +1.02% increase from the previous day, outperforming the S&P 500's gain of 0.61% [1] - The stock has risen by 22.43% over the past month, significantly exceeding the Consumer Discretionary sector's gain of 5.12% and the S&P 500's gain of 3.85% [1] Upcoming Financial Results - The projected earnings per share (EPS) for Royal Caribbean is $4.05, reflecting a 26.17% increase from the same quarter last year [2] - Revenue is expected to reach $4.54 billion, up 10.58% from the prior-year quarter [2] Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at $15.43 per share and revenue at $18.05 billion, indicating increases of +30.76% and +9.48% respectively from the previous year [3] - Recent analyst estimate changes suggest a favorable outlook on the company's business health and profitability [3] Valuation Metrics - Royal Caribbean has a Forward P/E ratio of 21.4, which is a discount compared to the industry average Forward P/E of 21.76 [6] - The company holds a PEG ratio of 0.98, compared to the industry average PEG ratio of 1.99 [6] Industry Context - The Leisure and Recreation Services industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 68, placing it in the top 28% of over 250 industries [7] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]