Royal Caribbean boosts profit guidance and reinstates dividend as bookings stay strong

Royal Caribbean Cruises (NYSE:RCL) is on watch Thursday after topping Q2 earnings expectations. Strong demand for the company’s vacation experiences, including onboard spend, led to stronger revenue in the quarter and a further improvement in yield and earnings expectations for the balance of the year.

Revenue rose 16.8% year-over-year to $4.11 billion. Gross margin yields were up 24.2% as-reported, while net yields were up 13.3%. Adjusted net income was $882 million vs. $492 million a year ago. Adjusted EBITDA was reported at $1.6 billion. EPS came in at $3.21 vs. $2.75 consensus and $1.82 a year ago.

“Exceptional demand for our vacation experiences has accelerated our performance by generating significant yield growth over the past several years,” noted CEO Jason Liberty. “As we look forward, we remain intensely focused on driving strong shareholder returns by delivering a lifetime of vacations and taking a greater share of the rapidly growing $1.9 trillion global vacation market,” he added.

Looking ahead, Royal Caribbean Cruises (RCL) said it sees EPS of $11.35 to $11.45, vs. $11.09 consensus. Net Yields are expected to increase in a range of 10.4% to 10.9%. The company also reinstated a quarterly dividend at $0.40 per share.

Shares of Royal Caribbean (RCL) slipped 1.01% in premarket action.