-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
RCL reported Q1 adjusted EPS of $3.60, up 33% Y/Y and significantly beating the $3.20 consensus estimate. Total revenue of $4.45B, up 11%, was in line with consensus, while onboard revenue surged 14% and net yields grew 2% excluding currency effects. In our view, the strong onboard spending result signals consumer willingness to spend and reflects RCL's effective push to capture destination spending through private island destinations and targeted marketing. Management lowered 2026 adjusted EPS guidance this quarter to $17.10-$17.50, from $17.70-$18.10, citing higher fuel costs and geopolitical impacts. We believe the 300bps expansion in adjusted EBITDA margins to 38% showcases the operational leverage inherent in the business model, with net cruise costs excluding fuel rising only 0.6% in constant currency. The company's strong balance sheet with $6.9B liquidity and $1.1B returned to shareholders this quarter demonstrates its continued ability to invest in growth while rewarding shareholders.