Stock Alert: Royal Caribbean Surpasses $250 on Strong Earnings

Royal Caribbean Cruises’ stock jumped more than 10% on Tuesday following the company’s better-than-expected earnings results.

Earnings for the most recent quarter were $1.63 per share, $0.12 better than analysts had expected for the company.

The company’s earnings beat came on robust earnings growth of 13%, also better than Wall Street had been looking for.  The company’s revenue has now grown 13 consecutive quarters continuing a recovery from the Pandemic that started in February 2022.

Royal Caribbean’s management commented that the company’s strong performance reflects continued growth in demand for cruise travel.  Consumers have continued to improve their spending trends of late, despite fears that increased inflation may return in 2025.

Royal Caribbean’s management also raised its guidance for earnings per share for its next quarter.

Shares of the cruise operator shot above $250, a price that has acted as resistance since early December.

The stock’s bullish 50-day moving average has been providing strong trend support for the last two weeks as shares were leaking to lower prices at $225.  Today’s response to the earnings report fortifies the stock’s short- and long-term trend as even more bullish.

Today’s technical break higher appears similar to the rallies posted in November and September 2024.  Each of those rallies carried Royal Caribbean stock an additional 17% higher.

Royal Caribbean stock maintains a bullish long-term outlook with a price target of $300.

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