Royal Caribbean Group (NYSE:RCL) reported first-quarter results on Thursday that came in ahead of expectations, supported by robust travel demand.
Adjusted earnings per share reached $3.60, exceeding the analyst consensus of $3.22, as the cruise operator capitalized on strong bookings following a record WAVE season. Revenue climbed 11% year-over-year to $4.5 billion, slightly above the $4.46 billion forecast.
The company issued full-year adjusted EPS guidance of $17.10 to $17.50, with a midpoint of $17.30. This outlook includes an estimated $0.62 per share impact from higher-than-expected fuel costs at current prices, along with disruptions to Middle East itineraries linked to geopolitical tensions. It also reflects savings from lower non-fuel expenses and the benefit of $836 million in share repurchases completed during the quarter.
Shares rose 5.1% following the announcement.
“Our strong first quarter results and record WAVE season demonstrate the exceptional appeal and compelling value proposition of our trusted brands, industry-leading ships, and destinations,” said Chairman and CEO Jason Liberty.
The company noted that bookings slowed in March and early April for Mediterranean and West Coast of Mexico routes due to geopolitical concerns, but have since rebounded and are now running ahead of the same period last year.
Net yields increased 3.6% on a reported basis and 2.0% in constant currency, outperforming guidance thanks to stronger pricing driven by late-stage demand and onboard spending.
For the second quarter, Royal Caribbean expects adjusted EPS between $3.83 and $3.93. Net yields are projected to rise about 0.9% as reported and 0.2% in constant currency, reflecting greater exposure to itineraries impacted by recent global events.
During the quarter, the company carried 2.5 million guests, up 12% year-over-year, with a load factor of 109%.