Shares of Royal Caribbean Group
RCL,
rallied toward a nine-month high Tuesday, after the cruise operator reported a fourth-quarter loss that narrowed more than forecast, as bookings have “significantly” exceeded pre-pandemic levels.
“Leisure travel strength continues as consumer spend is shifting towards experiences, with cruising remaining an attractive value proposition,” said Chief Executive Jason Liberty.
The stock shot up 4.9% in premarket trading, putting them on track to open at the highest price seen during regular-session hours since May 6, 2022.
Net losses for the latest quarter narrowed to $500.2 million, or $1.96 a share, from $1.36 billion, or $5.33 a share, in the same period a year ago. Excluding nonrecurring items, the adjusted per-share loss of $1.12 beat the FactSet loss consensus of $1.33.
Revenue jumped 165% to $2.604 billion, just shy of the FactSet consensus of $2.608 billion. Load factors were in line with guidance at 95%, with Caribbean sales reaching 100% and holiday sailings close to 110%, while revenue per passenger cruise increased 3.5%.
Booking volumes in the fourth-quarter were “significantly higher” than the same period of 2019, and momentum has continued into early 2023.
“We are experiencing a record-breaking WAVE season, resulting in a booked position approaching previous record highs and at higher prices,” CEO Liberty said. (Wave season refers to peak cruise-promotion season during the first quarter.)
For 2023, the company expects adjusted earnings per share of $3.00 to $3.60, surrounding the FactSet consensus of $3.33. Net yields are expected to increase 2.5% to 4.5% from 2019 levels.
The stock has soared 32.8% over the past three months through Monday while the S&P 500
SPX,
has tacked on 8.0%.
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