Shares of Royal Caribbean Group have now recovered everything they lost because of the COVID-19 pandemic, with the cruise operator reporting second-quarter results that beat forecasts and giving a big boost to its full-year outlook, citing “exceptionally strong” demand and record pricing.
The stock
RCL,
shot up 8.3% in premarket trading Thursday. That puts it on track to open at the highest price seen during regular-session hours since Feb. 20, 2020, which was about three weeks before the World Health Organization declared COVID-19 a pandemic.
“Our brands continue to fire on all cylinders, resulting in record yields and second-quarter earnings significantly exceeding our expectations,” said Royal Caribbean Chief Executive Officer Jason Liberty.
The company swung to net income for $458.8 million, or $1.70 a share, from a loss of $521.6 million, or $2.05 a share, in the same period a year ago.
Excluding nonrecurring items, adjusted earnings per share of $1.82 beat the FactSet consensus of $1.57.
Total revenue grew 61.3% to $3.52 billion, above the FactSet consensus of $3.41 billion, as onboard revenue jumped 40.9% to $1.08 billion and passenger ticket revenue increased 72.3% to $2.44 billion.
Bookings remain “significantly higher” than the pre-COVID levels of 2019 and are at record pricing levels. Bookings for 2024 cruises are significantly higher than all prior-year periods and are at record prices.
“Demand for cruising and our brands is exceptionally strong, and we have seen another step change in booking volumes and pricing, leading us to now expect double-digit net yield growth for the full year,” CEO Liberty said.
For 2023, the company raised its guidance ranges for adjusted EPS to $6-$6.20 from $4.40-$4.80 and for net yields compared with 2019 to 11.5%-12% from 6.25%-7.25%.
The stock has rocketed 104.1% year to date through Wednesday, while the S&P 500
SPX,
has advanced 18.9%.
