The power of revenge travel is real as Royal Caribbean Group's shares have recovered everything it lost during the COVID-19 pandemic after its market shares rose to 8.3% in Thursday's (July 27) premarket trading.
According to the company's second-quarter report, it has beaten market forecasts and given a big boost to its full-year outlook, citing "exceptionally strong" demand and record pricing.
As a result, the company's net income increased to $458.8 million, or $1.70 per share, an improvement from $521.6 million ($2.05 per share) in the same period in 2022.
Excluding non-recurring items, adjusted earnings per share of $1.82 beat the FactSet consensus of $1.57. In addition, the total revenue also grew by 61.3% to $3.52 billion, above the FactSet estimate of $3.41 billion.
Onboard revenue and passenger ticket revenue also increased by 40.9% ($1.08 billion) and 72.3% ($2.44 billion), respectively.
Read Also: More HNGN Business News
Full Speed Ahead
The market share rise was the first time Royal Caribbean was in the black since February 20, 2020, three weeks before the World Health Organization declared COVID-19 a pandemic.
Royal Caribbean CEO Jason Liberty said everything in the company is full speed ahead.
"Our brands continue to fire on all cylinders, resulting in record yields and second-quarter earnings significantly exceeding our expectations," he told MarketWatch.
Currently, the company's bookings remain "significantly higher" than pre-COVID levels in 2019 and are at record pricing levels. Bookings for 2024 cruises are also significantly higher than all prior-year periods.
"Demand for cruising and our brands is exceptionally strong, and we have seen another step change in booking volumes and pricing, leading us to now expect double-digit net yield growth for the full year," Liberty added.
