: Royal Caribbean stock rallies after much narrower-than-expected loss and raised profit outlook, as demand has ‘swiftly’ accelerated

Shares of Royal Caribbean Group RCL ran up 7.4% toward a two-month high in premarket trading Thursday, after the cruise operator reported a much narrower-than-expected loss and raised its full-year profit outlook, as demand “swiftly” accelerated above historical trends. The net loss narrowed to $47.9 million, or 19 cents a share, from $1.17 billion, or $4.58 a share, in the year-ago period. Excluding nonrecurring items, the adjusted per-share loss of 23 cents was one-third the FactSet loss consensus of 69 cents. Revenue soared 172.4% to $2.89 billion, above the FactSet consensus of $2.82 billion, as passenger ticket revenue jumped 190.9% to $1.90 billion and onboard and other revenue grew 142.7% to $988.6 million. Net yields were up 5.1%. “We knew that demand for our business was strong and strengthening, but we have been pleasantly surprised with how swiftly demand further accelerated well above historical trends and at higher rates,” said Chief Executive Officer Jason Liberty. “Leisure travel continues to strengthen as consumer spend further shifts towards experiences.” For 2023, the company raised its guidance ranges for adjusted earnings per share to $4.40 to $4.80 from $3.00 to $3.60 and for net yields growth to 6.25% to 7.25% from 2.5% to 4.5%. The stock has soared 35.7% year to date through Wednesday, while the S&P 500 SPX has gained 6.5%.

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