Royal Caribbean Cruises Ltd (RCL) stock surged over 6% in pre-market trading on Tuesday, January 28, 2025, after the cruise operator reported better-than-expected fourth quarter 2024 earnings and provided an upbeat outlook for 2025.

For the fourth quarter of 2024, RCL reported adjusted earnings per share (EPS) of $1.63, beating analysts' consensus estimate of $1.50. Revenue for the quarter came in at $3.76 billion, in line with expectations.

The strong quarterly results were driven by higher pricing on close-in demand (last-minute bookings) and continued strength in onboard revenue. The company achieved an occupancy rate of 108%, indicating that three or more passengers occupied some cabins.

Looking ahead, RCL provided a bullish outlook for 2025, forecasting adjusted EPS in the range of $14.35 to $14.65, with the midpoint exceeding analysts' consensus estimate of $14.41. The company cited record bookings during the "Wave season" (the peak booking period in the first quarter of the calendar year), with booked load factors in line with prior years but at higher rates.

According to RCL's CEO Jason Liberty, "2025 is shaping up to be another great year, with expected adjusted earnings growth of 23%, as our commercial and vacation experiences flywheel continues to accelerate the growing preference for our leading brands, the most innovative ships and world-class private destinations."

The company's strong financial performance and optimistic guidance were driven by the continued recovery in the cruise industry and the rising popularity of leisure travel. RCL's diverse offerings, including private destinations and premium voyages, are resonating well with consumers, boosting bookings and pricing power.