Royal Caribbean (RCL) Lowers Q4 EPS Estimate to $17.95 Amid Capacity Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Earnings Downgrade: Citi Research has lowered Royal Caribbean's Q4 EPS estimate by $0.06 to $17.95, reflecting concerns over FY26 yield guidance likely falling below expectations, which may impact investor confidence.
- Supply-Demand Pressure: Analysts indicate that oversaturation in the Caribbean market and a slowdown in demand could lead to a decline in Q4 performance, with Q1 expected to face even greater challenges affecting overall industry performance.
- Revenue Forecast Adjustment: Royal Caribbean's Q4 is projected to generate $4.28 billion in sales, a 13% year-over-year increase, but capacity issues have led to a yield estimate reduction to 2.65%, below the market consensus of 3.0%.
- Increased Stock Volatility: Royal Caribbean shares fell another 4% on Wednesday, extending a three-day decline to 10%, reflecting market concerns about the company's future performance and negative investor sentiment.
Analyst Views on RCL
Wall Street analysts forecast RCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RCL is 343.87 USD with a low forecast of 290.00 USD and a high forecast of 415.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
13 Buy
4 Hold
0 Sell
Strong Buy
Current: 291.720
Low
290.00
Averages
343.87
High
415.00
Current: 291.720
Low
290.00
Averages
343.87
High
415.00
About RCL
Royal Caribbean Cruises Ltd. is a cruise company, which owns and operates three global cruise brands: Royal Caribbean International, Celebrity Cruises and Silversea Cruises. It also has an interest in TUI Cruises GmbH, which operates the German brands TUI Cruises and Hapag-Lloyd Cruises. Its ships offer a selection of worldwide itineraries that call on approximately 1,000 destinations on all seven continents. Royal Caribbean International offers cruises and land destinations that generally feature a casual ambiance, as well as a variety of activities and entertainment venues. Celebrity Cruises offers a range of itineraries to destinations, including Alaska, Asia, Australia, Bermuda, Canada, the Caribbean, Europe, the Galapagos Islands, Hawaii, New Zealand, the Panama Canal and South America, with cruise lengths ranging from three to 14 nights. It also offers a range of private land destinations through Perfect Day at CocoCay, includes full water park, zip line course, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
