Core Insights - Royal Caribbean Cruises Ltd. (RCL) is set to report its third-quarter 2025 results on October 28, with a history of beating earnings estimates in the past four quarters, averaging a surprise of 6.4% [1][9]. Earnings Estimates - The Zacks Consensus Estimate for RCL's third-quarter earnings per share (EPS) is $5.67, reflecting a 9% increase from $5.20 in the same quarter last year [2][9]. - Revenue expectations are pegged at approximately $5.16 billion, indicating a 5.7% rise from the previous year's figure [2][9]. Revenue Drivers - The anticipated increase in RCL's third-quarter revenue is attributed to strong consumer demand, favorable pricing trends, and robust onboard revenue streams [3]. - High booking activity, especially for close-in sailings, and steady load factors are expected to support revenue growth [3]. Yield and Revenue Growth - Management projects net yield growth of 2-2.5%, driven by consistent performance from the existing fleet and strong contributions from Caribbean, European, and Alaskan itineraries [4]. - Third-quarter passenger ticket revenues are estimated to rise by 5.1% year over year to $3.6 billion, while onboard and other revenues are expected to increase by 6.3% to $1.5 billion [5]. Cost Pressures - Elevated costs related to new ship deliveries and deferred spending are likely to impact margins, with net cruise costs (excluding fuel) expected to rise by 6-6.5% year over year [6]. - The estimated net cruise costs for the third quarter are projected at $126.2 million on a reported basis [6]. Overall Performance Outlook - Despite cost pressures, solid yield growth and sustained onboard revenue strength are likely to mitigate most of the margin impacts [7]. - The company anticipates adjusted EPS in the range of $5.55-$5.65, indicating continued earnings momentum and effective execution across its global operations [7]. Earnings Prediction - The model predicts an earnings beat for RCL, supported by a positive Earnings ESP and a Zacks Rank of 3 (Hold) [8][10].

Core Insights - Norwegian Cruise Line Holdings Ltd. (NCLH) reported strong fourth-quarter 2024 results, with earnings and revenues exceeding the Zacks Consensus Estimate, showing year-over-year growth [1][3][4] Financial Performance - Adjusted earnings per share for Q4 were 26 cents, surpassing the consensus estimate of 11 cents, compared to an adjusted loss of 18 cents in the prior-year quarter [3] - Quarterly revenues reached $2.11 billion, beating the consensus mark of $2.09 billion, and increased from $1.99 billion in the prior-year quarter [3] - Passenger ticket revenues were $1.41 billion, up from $1.33 billion year-over-year, while onboard and other revenues rose to $700.6 million from $653.4 million [4] Cost Management - Total cruise operating expenses decreased by 1.1% year-over-year to $1.31 billion, attributed to lower commissions, transportation, and fuel costs, although partially offset by higher onboard costs and payroll expenses [5] - Gross cruise costs per Capacity Day were $285.92, up from $279.52 in the prior year, while adjusted net cruise costs (excluding fuel) per Capacity Day increased to $157.54 from $150.70 [6] 2024 Highlights - Total revenues for 2024 were $9.48 billion, an increase from $8.55 billion in 2023 [7] - Adjusted EBITDA for 2024 was $2.45 billion, compared to $1.86 billion in 2023, and adjusted earnings per share rose to $1.82 from 70 cents [7] Balance Sheet - As of December 31, 2024, cash and cash equivalents were $190.8 million, down from $402.4 million at the end of 2023, while long-term debt decreased to $11.78 billion from $12.31 billion [8] Booking and Demand - The company reported strong consumer demand across itineraries and brands, with occupancy during the quarter at 104.9% and advance ticket sales balance of $3.2 billion [10] - Bookings are expected to remain optimal into 2025 and 2026 [10] Guidance - For Q1 2025, NCLH anticipates occupancy of approximately 101.5% and adjusted EBITDA of about $435 million, with adjusted EPS predicted to be nearly 8 cents [11] - For the full year 2025, occupancy is expected to be around 103.4%, with adjusted EBITDA projected at nearly $2.72 billion and adjusted EPS at nearly $2.05 [12]