Shares of Royal Caribbean Group (RCL) saw a 0.8% increase in premarket trading on Thursday following the company's impressive fourth-quarter performance. While revenue fell slightly below expectations, the cruise operator reported a notable increase in profit and provided an optimistic outlook for 2024.
Solid Financial Performance
Royal Caribbean Group experienced a significant turnaround, posting a net income of $278 million, translating to $1.06 per share. This stands in stark contrast to the loss of $500 million, or $1.96 per share, reported in the same period last year. Adjusting for nonrecurring items, the company's earnings per share reached $1.25, surpassing the FactSet consensus of $1.14.
Revenue Growth
Despite falling short of the FactSet consensus by a small margin, Royal Caribbean Group achieved a commendable 27.9% growth in revenue, reaching $3.33 billion. Passenger ticket revenue played a critical role in this success, climbing by an impressive 34.3% to $2.29 billion. Additionally, onboard and other revenue saw a substantial increase of 15.9%, reaching $1.05 billion.
Promising Outlook for 2024
Royal Caribbean Group remains optimistic about its future performance, with a record number of booked positions in both rates and volume. The company expects adjusted earnings per share of $1.10 to $1.20 for the first quarter, exceeding the FactSet consensus of 93 cents. Looking further ahead to 2024, Royal Caribbean Group anticipates adjusted earnings per share of $9.50 to $9.70, compared to initial expectations of $9.21.
Market Performance
Over the past three months, Royal Caribbean Group's stock has soared by an impressive 49.5%. In comparison, the S&P 500 has gained 14.3% during the same period.
Royal Caribbean Group's strong fourth-quarter results, coupled with its positive outlook for 2024, showcase the company's ability to navigate challenges and position itself for future success.
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