Royal Caribbean Group raised its annual earnings forecast on October 27 after reporting third-quarter revenue of $5.6 billion, a 9% increase from a year earlier.
Net income was approximately $1.7 billion, or $6.45 per share, compared with $1.6 billion, or $5.74 per share, a year earlier. Adjusted earnings reached $6.57 per share; that supplemental measure excludes specified items.
The cruise operator attributed results above its previous guidance to stronger bookings close to departure and lower costs caused by expense timing. Some expenses shifted into the fourth quarter, rather than disappearing altogether.
Management now expects annual adjusted earnings of $17.85–$17.95 per share and revenue growth of approximately 9%. Higher fuel costs and currency movements partly offset the benefit of the stronger third quarter in that outlook.
The company reported $7.4 billion in liquidity at September 30, including cash and unused revolving credit capacity. That measure does not consist entirely of cash on hand.
The annual outlook remains a forecast dependent on demand, fuel costs and other conditions.
Sources: Royal Caribbean Group, October 27 results: https://www.prnewswire.com/news-releases/royal-caribbean-group-reports-third-quarter-results-above-expectations-and-raises-full-year-guidance-302920572.html