Royal Caribbean Group (RCL) announced on Tuesday a significant increase in its fourth-quarter earnings, surpassing analysts' projections. The company also offered earnings guidance for the first quarter that exceeded Wall Street expectations. As a result, Royal Caribbean's shares rose by more than 5 percent in pre-market trading.
For the fourth quarter, Royal Caribbean reported a net income of $553 million, or $2.02 per share, compared to $278 million, or $1.06 per share, in the corresponding quarter of the previous year. When excluding one-time items, the earnings amounted to $445 million, or $1.63 per share, outperforming the average estimate of $1.50 per share from 19 analysts. Typically, analysts' estimates do not consider special items.
The company's revenue for the quarter grew to $3.761 billion, up from $3.331 billion the previous year, slightly below the consensus estimate of $3.77 billion.
Looking ahead to the first quarter, Royal Caribbean forecasts adjusted earnings per share (EPS) to range between $2.43 and $2.53, exceeding the market expectation of $2.36 per share.
For the entire year, the company anticipates an adjusted EPS between $14.35 and $14.65, with consensus estimates at $14.44.
Royal Caribbean's stock closed at $236.82 on Monday, marking a 2.03 percent increase. Over the past year, the stock has traded between $113.10 and $258.70.
