Why RCL Is Advancing Today

Royal Caribbean (RCL) is rising 7% today after the cruise operator reported higher-than-expected fourth-quarter earnings per share. Moreover, the midpoint of the firm’s full-year EPS guidance range came in above analysts’ average estimate.

A Look at RCL’s Q4 Results and Its Full-Year EPS Guidance

The company generated Q4 EPS, excluding certain items, of $1.63, versus analysts’ average estimate of $1.50. In Q4 of 2024, it reported adjusted EPS of $1.25. Last quarter, RCL’s revenue climbed 13% year-over-year to $3.8 billion.  The company’s revenue was in line with analysts’ average outlook.

A luxurious cruise ship sailing the deep blue sea, sun glistening off its decks.

For all of RCL’s fiscal 2025, the company expects to generate adjusted EPS of $14.35 to $14.65. The midpoint of that range is $14.50, which is above analysts’ mean estimate of $14.44.

RCL noted that its financial results were boosted by higher prices “and continued strength in onboard revenue.”

“2025 is shaping up to be another great year, with expected adjusted earnings growth of 23%, as our commercial and vacation experiences flywheel continues to accelerate the growing preference for our leading brands, the most innovative ships, and world-class private destinations,” CEO Jason Liberty said in a statement.

The Recent Price Action of RCL Stock

In the last month, the shares have climbed 10%, while they have advanced 20% in the last three months.

While we acknowledge the potential of RCL, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RCL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.