Royal Caribbean Group
beat earnings estimates in the fourth quarter with a narrower-than-expected loss and said bookings were nearing record highs at higher prices.
The cruise operator (ticker: RCL) reported an adjusted loss of $1.12 per share on sales of $2.6 billion.
Analysts, surveyed by FactSet, were expecting a loss of $1.33 per share on sales of $2.61 billion. Royal Caribbean said the beat was driven by better pricing on last-minute demand and strong consumer spending onboard.
The company said it was experiencing a record-breaking ‘WAVE season’ — the term it uses to describe the period between the winter holiday season and the end of March when promotions are offered–but at higher prices than usual.
Since the middle of November, Royal Caribbean said it has recorded the seven strongest weeks of bookings in its history.
In the first quarter of 2023, the company expects to post an adjusted loss of 65 cents to 85 cents per share. Analysts are expecting a loss of 77 cents per share, before seeing a return to profit in the remaining three quarters of the year.
Royal Caribbean issued guidance for full-year earnings per share of $3 to $3.60 in 2023, in line with analysts’ expectations for $3.33.
The stock, which has climbed around 40% so far in 2023 as of Monday’s close pointed 5% higher in premarket trading Tuesday.
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