William Blair Issues Negative Outlook for RCL Earnings

Royal Caribbean Cruises Ltd. (NYSE:RCL) – Stock analysts at William Blair cut their Q4 2024 earnings estimates for shares of Royal Caribbean Cruises in a report released on Wednesday, January 22nd. William Blair analyst S. Zackfia now forecasts that the company will post earnings of $1.46 per share for the quarter, down from their previous forecast 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.

Other equities research analysts also recently issued research reports about the company. JPMorgan Chase & Co. lifted their target price on Royal Caribbean Cruises from $253.00 to $295.00 and gave the stock an “overweight” rating in a report on Friday, January 17th. The Goldman Sachs Group lifted their price objective on shares of Royal Caribbean Cruises from $245.00 to $275.00 and gave the stock a “buy” rating in a research note on Tuesday, December 10th. Mizuho reaffirmed an “outperform” rating and set a $253.00 target price (down from $255.00) on shares of Royal Caribbean Cruises in a report on Thursday. Truist Financial lifted their price target on shares of Royal Caribbean Cruises from $204.00 to $272.00 and gave the company a “buy” rating in a research report on Monday, December 2nd. Finally, Barclays lifted their price objective on Royal Caribbean Cruises from $245.00 to $287.00 and gave the company an “overweight” rating in a report on Friday, December 13th. Three research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $250.13.

Royal Caribbean Cruises Stock Performance

NYSE:RCL opened at $238.40 on Friday. The stock has a 50 day simple moving average of $237.63 and a 200 day simple moving average of $197.71. The stock has a market cap of $64.10 billion, a P/E ratio of 24.50, a PEG ratio of 0.50 and a beta of 2.59. Royal Caribbean Cruises has a 1-year low of $113.10 and a 1-year high of $258.70. The company has a current ratio of 0.19, a quick ratio of 0.16 and a debt-to-equity ratio of 2.63.

Royal Caribbean Cruises (NYSE:RCL) last issued its quarterly earnings data on Tuesday, October 29th. The company reported $5.20 earnings per share for the quarter, beating the consensus estimate of $5.05 by $0.15. Royal Caribbean Cruises had a net margin of 16.21% and a return on equity of 52.92%. The company had revenue of $4.89 billion for the quarter, compared to analyst estimates of $4.89 billion. During the same period in the prior year, the firm earned $3.85 earnings per share. The company’s revenue was up 17.5% on a year-over-year basis.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. International Assets Investment Management LLC grew its stake in Royal Caribbean Cruises by 10,599.0% in the 3rd quarter. International Assets Investment Management LLC now owns 409,879 shares of the company’s stock valued at $72,696,000 after purchasing an additional 406,048 shares during the period. Teachers Retirement System of The State of Kentucky boosted its stake in Royal Caribbean Cruises by 809.6% in the second quarter. Teachers Retirement System of The State of Kentucky now owns 173,124 shares of the company’s stock valued at $27,601,000 after acquiring an additional 154,090 shares during the last quarter. Nomura Asset Management Co. Ltd. grew its position in shares of Royal Caribbean Cruises by 138.2% during the 3rd quarter. Nomura Asset Management Co. Ltd. now owns 161,835 shares of the company’s stock valued at $28,703,000 after acquiring an additional 93,899 shares during the period. Healthcare of Ontario Pension Plan Trust Fund purchased a new stake in shares of Royal Caribbean Cruises during the 3rd quarter worth approximately $14,544,000. Finally, Dakota Wealth Management raised its holdings in shares of Royal Caribbean Cruises by 3,935.2% in the 3rd quarter. Dakota Wealth Management now owns 76,871 shares of the company’s stock worth $13,635,000 after purchasing an additional 74,966 shares during the period. 87.53% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Royal Caribbean Cruises news, CAO Henry L. Pujol sold 6,723 shares of the stock in a transaction that occurred on Wednesday, October 30th. The stock was sold at an average price of $208.51, for a total transaction of $1,401,812.73. Following the transaction, the chief accounting officer now directly owns 9,964 shares in the company, valued at approximately $2,077,593.64. This represents a 40.29 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Richard D. Fain sold 25,000 shares of the company’s stock in a transaction that occurred on Wednesday, October 30th. The stock was sold at an average price of $210.02, for a total value of $5,250,500.00. Following the transaction, the director now directly owns 204,521 shares in the company, valued at approximately $42,953,500.42. This trade represents a 10.89 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 404,332 shares of company stock valued at $94,299,521. 7.95% of the stock is currently owned by company insiders.

Royal Caribbean Cruises Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, January 13th. Investors of record on Friday, December 27th were given a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a yield of 0.92%. The ex-dividend date of this dividend was Friday, December 27th. Royal Caribbean Cruises’s dividend payout ratio is currently 22.61%.

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.