by Sarah Kuta
Last updated: 11:15 AM ET, Tue October 29, 2024
Buoyed by strong demand for cruises, Royal Caribbean Group increased its annual profit forecast for the fourth time this year.
In an update to shareholders on Tuesday, the company lifted its full-year 2024 adjusted earnings per share guidance to $11.57 to $11.62. Thats up from the earlier expectation of $11.35 to $11.45.
"Our exceptional third quarter results and increased full year expectations reflect the robust demand for our differentiated vacation experiences," says Jason Liberty, president and chief executive officer of Royal Caribbean Group.?
Looking ahead to the fourth quarter, the company warned of an impact from Hurricane Milton, which in early October forced the cruise line to modify some of its itineraries. Royal Caribbean is forecasting fourth-quarter profits to be below estimates by $0.24 because of the storm, as well as costs shifting from the third quarter and higher stock compensation.
Demand for cruise vacations heading into 2025 is strong. The company has several new developments on the horizon, including the construction of a new private destination called Perfect Day Mexico slated to open in 2027. Silversea also announced plans to build a 150-room hotel in Puerto WIlliams, Chile, for Antarctic cruises. Ongoing projects include the construction of Royal Beach Club Paradise Island and Royal Beach Club Cozumel.
We wake up every day obsessively focused on our mission of delivering a lifetime of the very best vacation experiences to our guests, says Liberty. In pursuit of that mission, we are very excited to further broaden our Perfect Day Collection with Perfect Day Mexico and to develop the southernmost hotel on Earth. Together with the expansion of our Icon Class, we look to continue to change the game and position ourselves to win a greater share of the $1.9 trillion vacation industry."
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