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Royal Caribbean Cruises Ltd. Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

As you might know, Royal Caribbean Cruises Ltd. (NYSE:RCL) recently reported its annual numbers. Royal Caribbean Cruises reported in line with analyst predictions, delivering revenues of US$11b and statutory earnings per share of US$8.95, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on Royal Caribbean Cruises after the latest results.

See our latest analysis for Royal Caribbean Cruises

NYSE:RCL Past and Future Earnings, February 7th 2020
NYSE:RCL Past and Future Earnings, February 7th 2020

After the latest results, the 17 analysts covering Royal Caribbean Cruises are now predicting revenues of US$11.8b in 2020. If met, this would reflect a satisfactory 7.3% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to ascend 15% to US$10.31. Before this earnings report, analysts had been forecasting revenues of US$11.8b and earnings per share (EPS) of US$10.49 in 2020. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

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It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$144. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Royal Caribbean Cruises at US$165 per share, while the most bearish prices it at US$122. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.

In addition, we can look to Royal Caribbean Cruises's past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. Analysts are definitely expecting Royal Caribbean Cruises's growth to accelerate, with the forecast 7.3% growth ranking favourably alongside historical growth of 5.7% per annum over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 7.6% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Royal Caribbean Cruises is expected to grow at about the same rate as the wider market.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider market. The consensus price target held steady at US$144, with the latest estimates not enough to have an impact on analysts' estimated valuations.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Royal Caribbean Cruises going out to 2023, and you can see them free on our platform here..

You can also see whether Royal Caribbean Cruises is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.