Royal Caribbean (NYSE:RCL) is rallying in early Thursday trading after it topped earnings and revenue expectations for the second quarter and increased its earnings per share guidance.
The cruise line company reported Q2 EPS of $1.82, $0.26 better than the analyst estimate of $1.56, while revenue for the quarter came in at $3.52 billion versus the consensus estimate of $3.4 billion.
RCL said its strong results were "significantly better than the company's guidance" due to stronger pricing on closer-in demand and further strength in onboard revenue.
The company's shares are currently up over 8% at $109.40 in premarket trading.
"Our brands continue to fire on all cylinders, resulting in record yields and second-quarter earnings significantly exceeding our expectations," said Jason Liberty, president and CEO of Royal Caribbean Group. "Demand for cruising and our brands is exceptionally strong, and we have seen another step change in booking volumes and pricing, leading us to now expect double-digit net yield growth for the full year."
In Q3, the company expects adjusted earnings per share to be in the range of $3.38 to $3.48 per share. For the full year, it sees adjusted earnings from $6 to $6.20 per share.