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Valued at a market cap of $77.2 billion, Royal Caribbean Cruises Ltd. (RCL) is a cruise company that operates a diverse portfolio of brands, including Royal Caribbean International, Celebrity Cruises, and Silversea Cruises, catering to both mass-market and luxury travelers. The Miami, Florida-based company is known for its modern fleet, innovative ships, and destination-focused itineraries. It is scheduled to announce its fiscal Q4 earnings for 2025 in the near future.
Before this event, analysts expect this cruise company to report a profit of $2.79 per share, up 71.2% from $1.63 per share in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in each of the last four quarters. Its earnings of $5.75 per share in the previous quarter exceeded the forecasted figure by 1.2%.
For the current fiscal year, ending in December, analysts expect RCL to report a profit of $15.64 per share, up 32.5% from $11.80 per share in fiscal 2024. Furthermore, its EPS is expected to grow 14.5% year-over-year to $17.91 in fiscal 2026.
Shares of RCL have gained 23.7% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 16.9% return and the State Street Consumer Discretionary Select Sector SPDR ETF’s (XLY) 6.9% uptick over the same time period.
On Dec. 11, shares of RCL rose 7.4% after the company announced a new $2 billion share buyback program and declared a quarterly dividend of $1.00 per share. Investor sentiment was further boosted by Bank of America Corporation (BAC) data showing cruise-related consumer spending increased 11.2% year over year in November, despite a broader decline in overall travel spending.
Wall Street analysts are moderately optimistic about RCL’s stock, with an overall "Moderate Buy" rating. Among 25 analysts covering the stock, 17 recommend "Strong Buy," one indicates a “Moderate Buy,” and seven suggest "Hold.” The mean price target for RCL is $330, indicating a 16.5% potential upside from the current levels.
