Royal Caribbean Beats Its Own Q3 Guidance With $6.45 EPS, Lifts Full-Year Outlook
If you plan to sail with Royal Caribbean in 2027, note that the company says bookings for 2027 sailings are up in the high teens since the last earnings call, so demand is building. If you want a specific sailing, check it sooner rather than later. If you are sailing this fall, the company says fourth-quarter pre-cruise revenue rates are booked ahead of last year. The article gives no deadlines, promotions or price changes, so check your own booking directly with the line.
My read is that this was a clean beat with a few caveats. Adjusted EPS of $6.57 against $5.75 a year ago is a big jump, but part of it is cost timing: expenses shifted into the fourth quarter, which is why Q4 EPS is guided at $3.48 to $3.58. Fuel and currency also trimmed some of the raised outlook, which now sits at $17.85 to $17.95. The demand signals matter more to me. Bookings for 2027 are up in the high teens and the load factor was 112%, so the ships are running full. Management keeps pointing to its Perfecta goal of a $20-handle in 2027, and I would watch how that squares with the Sandals and Beaches deal. It is a 50% stake, expected to close in early 2027, and it should be accretive, but its contribution depends on timing and is not yet in guidance. As a cruiser, I would not expect bargains from a line this confident. If a 2027 sailing matters to you, I would book it rather than wait.