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Royal Caribbean Group

did higher than anticipated within the fourth quarter, delivering a narrower-than-expected loss and saying bookings had been nearing document highs at greater costs.

The inventory surged greater than 6% in early buying and selling Tuesday. It’s now up near 50% to date in 2023.

The cruise operator (ticker: RCL) reported an adjusted lack of $1.12 per share on gross sales of $2.6 billion.

Analysts surveyed by FactSet had been anticipating a lack of $1.33 a share from gross sales of $2.61 billion. Royal Caribbean stated the end result was pushed by higher pricing for bookings made on the final minute, in addition to robust spending by passengers on board.

Reserving volumes within the closing three months of the yr had been “considerably greater” than the identical interval in 2019, earlier than the pandemic, the corporate stated. Because the center of November, Royal Caribbean stated, it has recorded the seven strongest weeks of bookings in its historical past.

The corporate stated it was experiencing  a record-breaking “WAVE season’—the time period it makes use of to explain the interval between the winter holidays and the top of March, when promotions are supplied—with greater costs than common.

“Leisure journey energy continues as shopper spend is shifting in direction of experiences, with cruising remaining a gorgeous worth proposition,” CEO Jason Liberty stated in a press release.

Within the first quarter of 2023, the corporate expects to publish an adjusted lack of 65 cents to 85 cents per share. Analysts expect a lack of 77 cents per share, earlier than the cruise operator returns to profitability within the closing three quarters of the yr.

Royal Caribbean issued steering for full-year earnings per share of $3 to $3.60 in 2023, a spread whose midpoint is according to analysts’ expectations for $3.33.

William Blair analyst Ryan Sundby maintained a Market Carry out score on the inventory, noting the unsure financial setting.

“Whereas we stay inspired about Royal’s long-term return-to-cruise setting, which ought to profit from pent-up shopper demand, and a extra environment friendly fleet, we proceed to see near-term danger/reward profile as extra impartial at these ranges given uncertainty across the macroeconomic setting and aggressive exercise,” he stated in a analysis observe.

Write to Callum Keown at callum.keown@barrons.com