William Blair Issues Negative Forecast for RCL Earnings

Royal Caribbean Cruises Ltd. (NYSE:RCL) – William Blair reduced their Q4 2024 earnings per share (EPS) estimates for shares of Royal Caribbean Cruises in a research note issued on Wednesday, January 22nd. William Blair analyst S. Zackfia now anticipates that the company will earn $1.46 per share for the quarter, down from their prior estimate of $1.47. The consensus estimate for Royal Caribbean Cruises’ current full-year earnings is $11.66 per share. William Blair also issued estimates for Royal Caribbean Cruises’ Q1 2025 earnings at $2.41 EPS, Q2 2025 earnings at $3.83 EPS, Q3 2025 earnings at $5.75 EPS and Q4 2025 earnings at $2.45 EPS.

Royal Caribbean Cruises (NYSE:RCL) last issued its quarterly earnings results on Tuesday, October 29th. The company reported $5.20 EPS for the quarter, topping analysts’ consensus estimates of $5.05 by $0.15. Royal Caribbean Cruises had a return on equity of 52.92% and a net margin of 16.21%. The business had revenue of $4.89 billion for the quarter, compared to analyst estimates of $4.89 billion. During the same period last year, the company posted $3.85 earnings per share. Royal Caribbean Cruises’s quarterly revenue was up 17.5% compared to the same quarter last year.

Other equities research analysts have also issued research reports about the stock. Wells Fargo & Company raised their price target on shares of Royal Caribbean Cruises from $180.00 to $232.00 and gave the stock an “overweight” rating in a research note on Wednesday, October 30th. Citigroup upped their price target on Royal Caribbean Cruises from $257.00 to $283.00 and gave the company a “buy” rating in a research report on Wednesday, December 11th. Morgan Stanley lifted their price objective on Royal Caribbean Cruises from $190.00 to $210.00 and gave the stock an “equal weight” rating in a report on Wednesday, January 8th. StockNews.com raised shares of Royal Caribbean Cruises from a “sell” rating to a “hold” rating in a report on Tuesday, November 26th. Finally, Macquarie lifted their target price on shares of Royal Caribbean Cruises from $189.00 to $250.00 and gave the stock an “outperform” rating in a research note on Wednesday, October 30th. Three analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $249.81.

Royal Caribbean Cruises Stock Performance

NYSE RCL opened at $232.59 on Friday. The company has a debt-to-equity ratio of 2.63, a quick ratio of 0.16 and a current ratio of 0.19. The company has a market capitalization of $62.54 billion, a PE ratio of 23.90, a price-to-earnings-growth ratio of 0.50 and a beta of 2.59. Royal Caribbean Cruises has a 52-week low of $113.10 and a 52-week high of $258.70. The company has a 50-day simple moving average of $237.76 and a 200 day simple moving average of $198.49.

Royal Caribbean Cruises Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, January 13th. Investors of record on Friday, December 27th were issued a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a dividend yield of 0.95%. The ex-dividend date was Friday, December 27th. Royal Caribbean Cruises’s dividend payout ratio is currently 22.61%.

Insider Buying and Selling

In other news, CAO Henry L. Pujol sold 6,723 shares of the company’s stock in a transaction dated Wednesday, October 30th. The shares were sold at an average price of $208.51, for a total transaction of $1,401,812.73. Following the completion of the transaction, the chief accounting officer now directly owns 9,964 shares of the company’s stock, valued at approximately $2,077,593.64. This represents a 40.29 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Arne Alexander Wilhelmsen sold 139,353 shares of the firm’s stock in a transaction dated Thursday, November 21st. The stock was sold at an average price of $237.89, for a total value of $33,150,685.17. Following the completion of the sale, the director now directly owns 18,167,507 shares in the company, valued at $4,321,868,240.23. The trade was a 0.76 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 404,332 shares of company stock worth $94,299,521 in the last 90 days. 7.95% of the stock is owned by company insiders.

Institutional Trading of Royal Caribbean Cruises

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Plato Investment Management Ltd bought a new position in Royal Caribbean Cruises in the third quarter worth $26,000. Safe Harbor Fiduciary LLC bought a new position in shares of Royal Caribbean Cruises in the 3rd quarter worth about $27,000. DiNuzzo Private Wealth Inc. lifted its position in Royal Caribbean Cruises by 257.4% during the 3rd quarter. DiNuzzo Private Wealth Inc. now owns 168 shares of the company’s stock valued at $30,000 after acquiring an additional 121 shares during the period. LRI Investments LLC bought a new stake in Royal Caribbean Cruises during the third quarter worth about $31,000. Finally, ORG Wealth Partners LLC purchased a new stake in Royal Caribbean Cruises in the fourth quarter worth about $40,000. Hedge funds and other institutional investors own 87.53% of the company’s stock.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of February 21, 2024, it operated 65 ships. Royal Caribbean Cruises Ltd.