William Blair, a prominent equities research firm, has revised its third-quarter 2025 earnings per share (EPS) estimates for Royal Caribbean Cruises Ltd. (RCL), signaling a more cautious outlook for the cruise giant’s financial performance. This adjustment, issued in a recent research report, suggests potential headwinds for investors closely monitoring the company’s trajectory in the coming fiscal periods. The firm’s analysis provides a critical perspective on the anticipated profitability of one of the world’s leading cruise operators.
Specifically, William Blair analyst S. Zackfia now projects Royal Caribbean Cruises to post an EPS of $5.65 for Q3 2025, a notable reduction from their prior estimate of $5.82. Despite this downward revision, William Blair has maintained an “Outperform” rating on the stock, indicating a belief in the company’s long-term potential even amidst short-term adjustments. The broader market consensus for Royal Caribbean’s current full-year earnings stands at $14.90 per share, while William Blair’s forward estimates include $2.80 EPS for Q4 2025, $15.54 EPS for FY2025, and $18.31 EPS for FY2026.
Royal Caribbean Cruises recently disclosed its quarterly earnings data on Tuesday, July 29th, reporting an EPS of $4.38. This figure comfortably surpassed analysts’ consensus estimates of $4.04, demonstrating the company’s ability to exceed expectations in the immediate past. The cruise operator also recorded revenues of $4.54 billion for the quarter, aligning precisely with analyst projections and marking a robust 10.4% increase compared to the same period last year.
A deeper dive into Royal Caribbean’s financial health reveals several key metrics. The company boasts a net margin of 20.97% and an impressive return on equity of 47.15%, highlighting its efficiency and profitability. With a substantial market capitalization of $86.06 billion, Royal Caribbean operates with a price-to-earnings (PE) ratio of 23.76 and a price/earnings to growth (PEG) ratio of 0.93. Furthermore, the stock exhibits a beta of 2.17, indicating higher volatility relative to the overall market.
The stock performance of Royal Caribbean Cruises has seen considerable movement. Shares commenced trading at $316.93 on Thursday, with the company’s stock having fluctuated between a 1-year low of $130.08 and a 1-year high of $355.91. The 50-day simple moving average currently sits at $301.16, while the two-hundred-day simple moving average is $253.21, reflecting recent trends and longer-term stability in its trading patterns.
Institutional investors continue to show significant interest in Royal Caribbean Cruises, with 87.53% of the stock currently held by such entities. Recent modifications to holdings include Resonant Capital Advisors LLC purchasing a new position valued at approximately $348,000, and Wealthfront Advisers LLC increasing its shares by 4.1% to own 37,383 shares. Other notable activities include Atlatl Advisers LLC acquiring a new stake worth $1,532,000, and both Interchange Capital Partners LLC and Brighton Jones LLC incrementally raising their positions, underscoring ongoing confidence among major investment firms.
In other corporate news, a director of Royal Caribbean Cruises executed a sale of 19,600 shares on Monday, May 19th, at an average price of $253.10, totaling over $4.96 million. Following this transaction, the director’s direct ownership in the company stands at 165,421 shares. The firm also recently declared a quarterly dividend of $0.75 per share, paid on Thursday, July 3rd, to shareholders of record on Wednesday, June 4th. This translates to an annualized dividend of $3.00, yielding 0.9%, with a payout ratio of 22.49%.
Royal Caribbean Cruises Ltd. stands as a global cruise company, operating a diverse portfolio of brands including Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. These brands collectively offer a wide array of itineraries across the world’s oceans. As of February 21, 2024, the company boasts an impressive fleet of 65 ships, solidifying its position as a dominant player in the competitive global cruise industry.
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