Zacks Research Has Optimistic Outlook of RCL Q1 Earnings

Royal Caribbean Cruises Ltd. (NYSE:RCL) – Equities researchers at Zacks Research boosted their Q1 2025 earnings estimates for shares of Royal Caribbean Cruises in a report issued on Tuesday, February 11th. Zacks Research analyst M. Kaushik now forecasts that the company will earn $2.43 per share for the quarter, up from their prior forecast of $2.16. The consensus estimate for Royal Caribbean Cruises’ current full-year earnings is $14.96 per share. Zacks Research also issued estimates for Royal Caribbean Cruises’ Q1 2026 earnings at $3.56 EPS, Q2 2026 earnings at $4.23 EPS, Q3 2026 earnings at $5.09 EPS, Q4 2026 earnings at $3.58 EPS, FY2026 earnings at $16.46 EPS and FY2027 earnings at $19.25 EPS.

Royal Caribbean Cruises (NYSE:RCL) last issued its quarterly earnings results on Tuesday, January 28th. The company reported $1.63 earnings per share for the quarter, topping the consensus estimate of $1.50 by $0.13. Royal Caribbean Cruises had a return on equity of 48.97% and a net margin of 17.46%. During the same quarter in the prior year, the business posted $1.25 EPS.

RCL has been the subject of several other reports. Argus boosted their target price on shares of Royal Caribbean Cruises from $280.00 to $305.00 and gave the stock a “buy” rating in a research note on Wednesday, January 29th. Bank of America increased their price objective on Royal Caribbean Cruises from $210.00 to $240.00 and gave the company a “neutral” rating in a report on Wednesday, November 13th. Loop Capital initiated coverage on Royal Caribbean Cruises in a research note on Tuesday, February 4th. They set a “hold” rating and a $250.00 target price for the company. Truist Financial upped their price target on Royal Caribbean Cruises from $204.00 to $272.00 and gave the company a “buy” rating in a report on Monday, December 2nd. Finally, Wells Fargo & Company raised their price objective on shares of Royal Caribbean Cruises from $232.00 to $272.00 and gave the stock an “overweight” rating in a report on Monday, January 27th. Four analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company. Based on data from MarketBeat.com, Royal Caribbean Cruises currently has an average rating of “Moderate Buy” and an average target price of $284.12.

Royal Caribbean Cruises Stock Down 0.2 %

Shares of NYSE:RCL opened at $256.11 on Thursday. The company has a quick ratio of 0.15, a current ratio of 0.17 and a debt-to-equity ratio of 2.39. Royal Caribbean Cruises has a fifty-two week low of $113.10 and a fifty-two week high of $277.08. The stock has a market cap of $68.86 billion, a price-to-earnings ratio of 23.96, a price-to-earnings-growth ratio of 1.00 and a beta of 2.59. The firm’s 50 day moving average price is $243.28 and its 200 day moving average price is $207.65.

Hedge Funds Weigh In On Royal Caribbean Cruises

Several hedge funds have recently bought and sold shares of RCL. Vanguard Group Inc. grew its stake in Royal Caribbean Cruises by 8.0% in the 4th quarter. Vanguard Group Inc. now owns 28,072,316 shares of the company’s stock worth $6,476,003,000 after acquiring an additional 2,068,114 shares during the period. Geode Capital Management LLC lifted its position in Royal Caribbean Cruises by 6.3% during the fourth quarter. Geode Capital Management LLC now owns 5,969,532 shares of the company’s stock worth $1,373,856,000 after buying an additional 353,893 shares during the period. Norges Bank purchased a new stake in Royal Caribbean Cruises in the 4th quarter valued at about $707,833,000. D1 Capital Partners L.P. increased its stake in shares of Royal Caribbean Cruises by 3.8% during the 3rd quarter. D1 Capital Partners L.P. now owns 1,570,262 shares of the company’s stock valued at $278,502,000 after acquiring an additional 58,159 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its holdings in shares of Royal Caribbean Cruises by 3.3% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,519,000 shares of the company’s stock worth $350,418,000 after acquiring an additional 48,480 shares during the period. Hedge funds and other institutional investors own 87.53% of the company’s stock.

Insiders Place Their Bets

In other Royal Caribbean Cruises news, Director Arne Alexander Wilhelmsen sold 230,000 shares of the company’s stock in a transaction on Tuesday, November 19th. The stock was sold at an average price of $233.62, for a total value of $53,732,600.00. Following the sale, the director now owns 18,556,860 shares of the company’s stock, valued at approximately $4,335,253,633.20. This represents a 1.22 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Harri U. Kulovaara sold 3,256 shares of Royal Caribbean Cruises stock in a transaction on Wednesday, November 20th. The stock was sold at an average price of $234.62, for a total value of $763,922.72. Following the transaction, the executive vice president now directly owns 22,348 shares of the company’s stock, valued at $5,243,287.76. This trade represents a 12.72 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 372,609 shares of company stock worth $87,647,208. 7.95% of the stock is owned by company insiders.

Royal Caribbean Cruises Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, April 4th. Investors of record on Friday, March 7th will be paid a $0.75 dividend. This is a boost from Royal Caribbean Cruises’s previous quarterly dividend of $0.55. This represents a $3.00 annualized dividend and a dividend yield of 1.17%. Royal Caribbean Cruises’s dividend payout ratio (DPR) is 20.58%.

Royal Caribbean Cruises declared that its Board of Directors has authorized a share buyback plan on Wednesday, February 12th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the company to reacquire up to 1.5% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

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.