Royal Caribbean Group (NYSE:RCL) saw its shares fall more than 4% on Tuesday after releasing second-quarter results that topped profit forecasts but came in just short on revenue, tempering investor enthusiasm despite strong operational momentum.
The cruise company reported adjusted earnings per share of $4.38, outpacing the $4.08 average analyst estimate. However, quarterly revenue came in at $4.54 billion, narrowly missing expectations of $4.55 billion. Still, the figure marks a substantial improvement over the same quarter last year.
Royal Caribbean delivered vacations to 2.3 million guests during the quarter, a 10% increase year-over-year, with load factors reaching 110% — an indicator of strong demand across its cruise lines.
“Demand for our portfolio of brands and our industry-leading experiences continues to accelerate,” said Royal Caribbean Group President and CEO Jason Liberty. “We remain keenly focused on delivering exceptional value for our guests and shareholders – not just by executing today, but by staying ahead of where demand is going.”
Following the results, the company raised its full-year 2025 adjusted earnings guidance to between $15.41 and $15.55 per share. This upgrade reflects the company’s solid second-quarter performance, ongoing cost control, and continued upside from non-operating items. Analyst consensus previously stood at $15.45.
Net yields rose 5.3% on a reported basis compared with Q2 2024, supported by both new and legacy vessels. The gains were driven by improved ticket pricing and increased onboard spending. The company also reported a 5.8% year-over-year growth in available capacity during the quarter.
For the third quarter, Royal Caribbean expects adjusted earnings per share in the range of $5.55 to $5.65, with net yields anticipated to grow between 2.3% and 2.8% compared to the same period last year.
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