Royal Caribbean's share price surged following significant announcements made yesterday.
Royal Caribbean's shares touched an all-time high today, with a 13.4% surge, following its impressive earnings report and optimistic future projections. The cruise ship giant, which has seen its stock double in the past year, boasted solid earnings and promising guidance, as well as a major announcement.
Stepping into the river cruise trend, Royal Caribbean's CEO, Jason Liberty, revealed a significant increase in demand for their various brands and the company's decision to enter the river cruise market. With adjusted fourth-quarter net earnings of $1.63 per share surpassing expectations, Royal Caribbean forecasts even higher adjusted earnings per share in 2025 as "strong demand for the company's vacation experiences continues to accelerate."
Perhaps the most exciting piece of news for investors was the unveiling of Celebrity River Cruises, a new premium river cruise brand, slated to start accepting bookings this year and earmarking sailing dates for 2027 with an initial order of 10 new ships. The river cruise market has gained investor attention following Viking Holdings' rise after its IPO in May 2024, which has seen shares soar beyond 80%.
With half of Royal Caribbean's existing guests having either already experienced or expressed interest in river cruises, the new offering has the potential to broaden the company's customer base and fuel further growth. Royal Caribbean's solid financial performance and Optimistic outlook underpin investor confidence, pushing shares to new heights.
While Royal Caribbean Group reported 2024 Earnings per Share (EPS) of $10.94 and Adjusted EPS of $11.80, surpassing expectations due to stronger pricing on close-in demand and continued strength in onboard revenue, the company expects Adjusted EPS to be in the range of $14.35 to $14.65 for 2025, representing a 23% growth over 2024.
Driven by the company's impressive financial performance and optimistic future projections, investors are keen on increasing their investments in Royal Caribbean's finance sector. The announcement of Celebrity River Cruises, a new premium river cruise brand, has further boosted investor confidence, anticipating significant returns on their money.
