Royal Caribbean Q4 Earnings Preview: Can Cruise Line Stay Afloat Despite FX, Oil Headwinds?

2 days ago

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Royal Caribbean Cruises Ltd. RCL is set to release its fourth-quarter financial results on Tuesday before the opening bell. Here's a look at what to watch. 

What To Know: JPMorgan analyst Matthew R. Boss recently reiterated Royal Caribbean with an Overweight rating on the shares. He also raised the price target to $295 from $253.

Boss estimated fourth-quarter earnings per share of $1.50, slightly above the Street’s estimate of $1.49.

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On Friday, Goldman Sachs analyst Lizzie Dove reiterated Royal Caribbean with a Buy rating. She lowered the price target from $275 to $270 heading into the fourth-quarter report. Dove noted potential foreign exchange and crude oil headwinds for Royal Caribbean, which lowered the EPS forecast. 

However, the analyst remains optimistic on the cruise line this year and said she is "confident that RCL can still maintain its current guidance for 2025 to have a $14 handle."

Another optimistic analyst, Daniel Politzer for Wells Fargo, maintained Royal Caribbean with an Overweight and raised the price target from $232 to $272 on Monday. 

According to estimates from Benzinga Pro, analysts expect the company to report earnings of $1.50 per share and quarterly revenue of $3.76 billion. Royal Caribbean beat analysts' expectations on the top and bottom lines in the third quarter. 

Investors will be interested in Royal Caribbean's booking trends and onboard spending which has increased each quarter throughout the year. 

Price Action: According to data from Benzinga Pro, Royal Caribbean shares are up 1.21% at $234.90 at the time of publication Monday. 

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Image: Courtesy of Royal Caribbean Cruises Ltd. 

Market News and Data brought to you by Benzinga APIs

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