Royal Caribbean sees FY23 adjusted EPS $3.00-$3.60, consensus $3.25

The company is experiencing a record-breaking WAVE season, driven by strong demand. The seven biggest booking weeks in the company’s history have occurred since the last earnings call in November 2022. 2023 cumulative booked position remains well within historical ranges for all quarters and at record rates. North America based itineraries are booked in line with 2019 for the full year, and ahead for the second quarter through the fourth quarter. Net Yields are expected to increase 2.5% to 4.5% in both as-reported and in Constant Currency versus 2019. Net Yields are expected to ramp up as load factors reach historical levels by late spring. The company continues to successfully manage costs in a complicated environment with Net Cruise Costs, excluding Fuel, per APCD expected to increase 4.5% to 5.5% as-reported and 4.75% to 5.75% in Constant Currency compared to 2019, a three-year old benchmark, and include approximately 210 basis points from lingering transitional costs (e.g. crew movement) and additional structural costs. The company expects to exceed prior record Adjusted EBITDA, achieved in 2019.