Royal Caribbean (NYSE:RCL) shares are ticking higher today after the cruise company announced its results for the fourth quarter. Revenue increased by 28.1% year-over-year to $3.33 billion. However, the figure missed analysts’ expectations by a thin margin of $30 million. EPS of $1.25, on the other hand, outpaced estimates by $0.11.
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During the quarter, the load factor stood at 105%–which means that three or more passengers occupied some cabins–and gross cruise costs per APCD (available passenger cruise days) increased by 9.7%. In addition, gross margin yields increased 30.9%. RCL continues to experience robust demand and pricing trends. At present, the company is in a record-booked position in terms of both rate and volume. Further, consumer spending onboard remains buoyant.
Add to this, the response to RCL’s Icon of the Seas, the largest cruise ship in the world, has been robust. For Fiscal Year 2024, RCL expects net yields to increase by 5.25% to 7.25%. EPS for the year is anticipated in the range of $9.50 to $9.70. This points to an increase of 40% in the company’s bottom line.
Is RCL a Good Buy Right Now?
Overall, the Street has a Strong Buy consensus rating on Royal Caribbean. Following a mammoth 96% rally in the company’s share price over the past year, the average RCL price target of $146.78 implies a further 15.1% potential upside in the stock.
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