Royal Caribbean Stock Drops 7.9% Despite Strong Earnings, Revenue Misses Targets

Royal Caribbean Groups stock fell 7.9% after reporting third-quarter earnings that exceeded expectations, but revenue of $5.14 billion missed analyst forecasts, impacting investor confidence.

• In the third quarter, Royal Caribbean Group reported adjusted earnings per share of $5.75, surpassing analyst estimates of $5.69, despite a revenue shortfall of $5.14 billion compared to the expected $5.17 billion.
• The cruise operator delivered vacations to 2.5 million guests during the quarter, highlighting the strong demand for travel, including popular destinations like Santorini in Greece.
• Despite the revenue miss, Royal Caribbean International raised its full-year guidance, which may reflect optimism about future bookings and the performance of its brands, including Celebrity Cruises.