Shares of Royal Caribbean (NYSE:RCL) are up today after it reported earnings for its first quarter of Fiscal Year 2023. Adjusted earnings per share came in at -$0.23, which beat analysts’ consensus estimate of -$0.69 per share. Sales increased by 172.6% year-over-year, with revenue hitting $2.89 billion. This was $70 million above expectations.
Royal Caribbean’s revenue boost can be credited to better-than-expected bookings, beating 2019’s numbers. The Wave Season brought a record number of bookings, strong last-minute demand with higher prices, and raised revenue projections for the next three quarters.
Moving forward, the company predicts net yields to increase by 6.25% to 7.25% as-reported (6.75% to 7.75% in constant currency) compared to 2019. Royal Caribbean expects to significantly outdo its previous record adjusted EBITDA from 2019, with adjusted EPS for the full year projected to reach $4.40 to $4.80 per share, outshining the consensus of $3.36 and the earlier estimate of $3.00 to $3.60.
Overall, Wall Street analysts have a consensus price target of $85.10 on RCL stock, implying over 19% upside potential, as indicated by the graphic above.
