Royal Caribbean (RCL) Falls 8.5% on Missed Expectations

Core Insights - Royal Caribbean Cruises Ltd. (NYSE:RCL) experienced a significant drop of 8.53% in stock price, closing at $292.95, after missing revenue expectations for Q3 [1][3] Financial Performance - Revenues for Q3 increased by 5% to $5.139 billion from $4.886 billion year-on-year, but fell short of analyst expectations of $5.17 billion [2] - Attributable net income rose by 42% to $1.575 billion from $1.111 billion year-on-year, with earnings per share (EPS) reported at $5.74, exceeding company expectations due to higher close-in demand and lower costs [2] - For the nine-month period, revenues grew by 7.8% to $13.7 billion from $12.7 billion, while attributable net income increased by 52% to $3.5 billion from $2.3 billion [3] Future Outlook - The company anticipates strong momentum to continue, driven by accelerated demand, growing loyalty, and guest satisfaction [3] - The President and CEO expressed confidence in the company's booked position for 2026 and beyond, projecting earnings per share to reach a $17 handle, aligning with 2027 targets [4]