Why Royal Caribbean (RCL) is Poised to Beat Earnings Estimates Again

Earnings Performance - Royal Caribbean has consistently beaten earnings estimates in the past two quarters, with an average surprise of 9.43% [1] - For the most recent quarter, the company reported earnings of $5.20 per share, surpassing the expected$5.05 per share, resulting in a 2.97% surprise [2] - In the previous quarter, Royal Caribbean reported earnings of $3.21 per share, exceeding the consensus estimate of$2.77 per share, a 15.88% surprise [2] Earnings ESP and Zacks Rank - Royal Caribbean currently has a positive Earnings ESP of +0.15%, indicating analysts' bullish outlook on the company's earnings prospects [6] - The combination of a positive Earnings ESP and a Zacks Rank 2 (Buy) suggests a high likelihood of another earnings beat in the upcoming report [6] - Stocks with a positive Earnings ESP and a Zacks Rank 3 (Hold) or better produce a positive surprise nearly 70% of the time [4] Analyst Estimates and Predictive Power - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [5] - A negative Earnings ESP does not necessarily indicate an earnings miss but reduces the predictive power of the metric [7] - Investors are advised to check a company's Earnings ESP before its quarterly release to increase the odds of success [8]