Royal Caribbean Cruises Ltd (NYSE:RCL) shares rallied early Thursday after second-quarter earnings came in well ahead of forecasts on stronger pricing and solid demand for its cruises.
As a result of the accelerating demand environment for its vacation experiences, the company said it is increasing its full-year 2023 guidance.
Total revenues rose 61% to $3.52 billion for the three months to June 30, 2023, due to strong ticket prices from its North America and Europe cruises, as well as strength in onboard revenue.
Adjusted earnings per share (EPS) swung to $1.82 from a $2.08 loss a year earlier, beating the $1.58 consensus forecast of analysts, according to Zacks Investment Research.
"Our brands continue to fire on all cylinders, resulting in record yields and second quarter earnings significantly exceeding our expectations,” president and CEO Jason Liberty said in a statement.
"Demand for cruising and our brands is exceptionally strong and we have seen another step change in booking volumes and pricing, leading us to now expect double-digit net yield growth for the full year.”
Royal Caribbean has raised its full-year adjusted EPS guidance by 33% to $6 to $6.20.
Its shares rose 7% to $107.54 in opening trade.
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