Royal Caribbean Cruises raised its full-year profit forecast past analysts’ expectations as demand for its journeys outpaced a broader travel upswing, fueling growth in a sector that benefited from the easing of pandemic travel restrictions. Shares jumped as much as 8.5% in premarket trading.
(Bloomberg) — Royal Caribbean Cruises raised its full-year profit forecast past analysts’ expectations as demand for its journeys outpaced a broader travel upswing, fueling growth in a sector that benefited from the easing of pandemic travel restrictions. Shares jumped as much as 8.5% in premarket trading.
The Miami, Florida-based cruise line now expects adjusted earnings per share of $4.40 to $4.80 compared to previous guidance of $3 to $3.60, coming in well above expectations of about $3.36.
“We knew that demand for our business was strong and strengthening, but we have been pleasantly surprised with how swiftly demand further accelerated well above historical trends and at higher rates,” Chief Executive Officer Jason T. Liberty said in Royal Caribbean’s first quarter earnings report.
Booking volumes in the first three months of the year were significantly higher than the start of 2019, reaching a record level as the wave season — the time of the year when cruise companies run their promotions — started earlier and extended further.
Royal Caribbean is the latest to join an array of cruise lines riding high on a rebound of cruise-ship journeys that were hit hard by the pandemic. Peer Norwegian Cruise Line Holdings also delivered better-than-expected quarterly results and reported record bookings earlier this week.
Read more: Royal Caribbean Results Follow Norwegian’s Beat: Preview (1)
Royal Caribbean shares were up 35.7% this year through Wednesday, ahead of the 12.8% gains in the S&P 500 consumer discretionary index. The cruise company is set to give more insight in its earnings call at 10 a.m. New York time.
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