William Blair Analysts Lower Earnings Estimates for RCL

Royal Caribbean Cruises Ltd. (NYSE:RCL) – Analysts at William Blair lowered their Q3 2025 earnings per share estimates for Royal Caribbean Cruises in a note issued to investors on Tuesday, April 29th. William Blair analyst S. Zackfia now forecasts that the company will post earnings per share of $5.84 for the quarter, down from their previous forecast of $5.85. The consensus estimate for Royal Caribbean Cruises’ current full-year earnings is $14.90 per share. William Blair also issued estimates for Royal Caribbean Cruises’ Q4 2025 earnings at $2.73 EPS.

Royal Caribbean Cruises (NYSE:RCL) last released its earnings results on Tuesday, April 29th. The company reported $2.71 EPS for the quarter, topping the consensus estimate of $2.53 by $0.18. Royal Caribbean Cruises had a net margin of 17.46% and a return on equity of 48.97%. The company had revenue of $4 billion during the quarter, compared to analysts’ expectations of $4.02 billion. During the same quarter last year, the business earned $1.77 EPS. The business’s revenue was up 7.3% on a year-over-year basis.

Several other research firms have also recently commented on RCL. Argus raised their price target on Royal Caribbean Cruises from $280.00 to $305.00 and gave the company a “buy” rating in a report on Wednesday, January 29th. BNP Paribas assumed coverage on Royal Caribbean Cruises in a report on Thursday, March 27th. They issued an “outperform” rating and a $262.00 target price for the company. Morgan Stanley lowered their price target on shares of Royal Caribbean Cruises from $270.00 to $220.00 and set an “equal weight” rating on the stock in a research note on Thursday, April 10th. Mizuho reiterated an “outperform” rating and issued a $253.00 price objective (down previously from $255.00) on shares of Royal Caribbean Cruises in a research note on Thursday, January 23rd. Finally, Tigress Financial upped their target price on shares of Royal Caribbean Cruises from $270.00 to $330.00 and gave the stock a “buy” rating in a research report on Friday, February 7th. Four investment analysts have rated the stock with a hold rating, seventeen have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $272.55.

Royal Caribbean Cruises Price Performance

Shares of RCL opened at $230.03 on Friday. The company has a current ratio of 0.17, a quick ratio of 0.15 and a debt-to-equity ratio of 2.39. The stock’s 50 day moving average is $209.52 and its two-hundred day moving average is $227.19. Royal Caribbean Cruises has a twelve month low of $130.08 and a twelve month high of $277.08. The firm has a market capitalization of $62.46 billion, a PE ratio of 21.52, a P/E/G ratio of 0.90 and a beta of 2.26.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Dorsey & Whitney Trust CO LLC increased its position in Royal Caribbean Cruises by 2.0% during the fourth quarter. Dorsey & Whitney Trust CO LLC now owns 2,036 shares of the company’s stock worth $470,000 after purchasing an additional 39 shares during the last quarter. Ostrum Asset Management grew its stake in shares of Royal Caribbean Cruises by 0.3% during the 4th quarter. Ostrum Asset Management now owns 11,610 shares of the company’s stock valued at $2,678,000 after buying an additional 40 shares during the period. Farther Finance Advisors LLC grew its stake in shares of Royal Caribbean Cruises by 1.6% during the 4th quarter. Farther Finance Advisors LLC now owns 2,730 shares of the company’s stock valued at $630,000 after buying an additional 42 shares during the period. Hemington Wealth Management increased its holdings in shares of Royal Caribbean Cruises by 9.0% during the 4th quarter. Hemington Wealth Management now owns 533 shares of the company’s stock worth $123,000 after buying an additional 44 shares during the last quarter. Finally, CWM LLC raised its position in shares of Royal Caribbean Cruises by 0.4% in the 1st quarter. CWM LLC now owns 12,816 shares of the company’s stock worth $2,633,000 after buying an additional 45 shares during the period. Institutional investors and hedge funds own 87.53% of the company’s stock.

Insider Buying and Selling at Royal Caribbean Cruises

In related news, CFO Naftali Holtz sold 17,000 shares of the company’s stock in a transaction on Tuesday, February 18th. The stock was sold at an average price of $261.62, for a total value of $4,447,540.00. Following the completion of the transaction, the chief financial officer now directly owns 42,127 shares in the company, valued at approximately $11,021,265.74. This represents a 28.75 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Jason T. Liberty sold 58,000 shares of the firm’s stock in a transaction dated Tuesday, February 18th. The stock was sold at an average price of $261.95, for a total value of $15,193,100.00. Following the completion of the sale, the chief executive officer now directly owns 143,214 shares in the company, valued at approximately $37,514,907.30. The trade was a 28.83 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 109,492 shares of company stock worth $28,571,705. Corporate insiders own 7.95% of the company’s stock.

Royal Caribbean Cruises Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, April 4th. Investors of record on Friday, March 7th were paid a $0.75 dividend. This is an increase from Royal Caribbean Cruises’s previous quarterly dividend of $0.55. The ex-dividend date was Friday, March 7th. This represents a $3.00 annualized dividend and a yield of 1.30%. Royal Caribbean Cruises’s payout ratio is presently 28.06%.

Royal Caribbean Cruises announced that its board has initiated a share buyback plan on Wednesday, February 12th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the company to reacquire up to 1.5% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s management believes its shares are undervalued.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of February 21, 2024, it operated 65 ships. Royal Caribbean Cruises Ltd.