Royal Caribbean Cruises Ltd (NYSE:RCL) has increased earnings guidance for the year on an uptick in revenue over the third quarter but warned of a hit from Hurricane Milton.
Guidance for adjusted per-share earnings was increased by 1.7% at the midpoint to between $11.57 and $11.62 for the full year in third-quarter results on Tuesday.
However, earnings over the coming months were set to reflect a $0.24 hit, in part from the hurricane which struck earlier this month, leaving fourth-quarter guidance of $1.40 to $1.45 below expectations for $1.58.
Over the third quarter, revenue increased by 17.5% to $4.89 billion, against analysts’ expectations for $4.9 billion.
Adjusted per-share earnings climbed from $3.85 to $5.20 in the meantime, exceeding forecasts for $5.03.
Stronger pricing, robust onboard revenue and lower costs helped buoy figures over the third quarter, the cruise line operator said.
"Our exceptional third quarter results and increased full-year expectations reflect the robust demand for our differentiated vacation experiences," chief executive Jason Liberty said.
"We see elevated demand patterns continuing as we build the business for 2025."
Net income increased from $1 billion to $1.1 billion, while adjusted margins grew from 41.5% to 44% year on year.
Shares climbed by 1.5% on Tuesday.