For investors seeking a golden ticket to wealth, jumping on Royal Caribbean Group (RCL -2.98%) stock would have been a wise move over the past week. Riding high on a robust earnings report and a slew of analyst upgrades, the stock reached record-breaking highs. According to S&P Global Market Intelligence, the shares climbed nearly 15% from Monday to Friday.
### Smooth Sailing
On Tuesday, excitement among investors surged as Royal Caribbean unveiled its fourth-quarter and full-year 2024 results, along with a tantalizing announcement about diving into a promising new venture. During the quarter, the company generated $3.76 billion in revenue, marking a healthy 13% increase over the same quarter from the previous year. Impressively, it almost doubled its net income, reaching $553 million. Adjusted for non-GAAP per-share metrics, their bottom line profits rose by 30% to $1.63 per share. While the revenue figures met analysts’ expectations, the net income outperformed predictions significantly.
The company might be on the cusp of even greater growth if its new initiative takes off. They’ve introduced Celebrity River Cruises, marking their entry into a niche yet thriving segment of the cruise market. The plan is to start with a fleet of 10 ships, with voyages kicking off in 2027.
### The Experts Weighed In
This wave of positive news certainly stirred enthusiasm among analysts, leading several to revise their price targets upward following the earnings announcement. Notably, Barclays analyst Brandt Montour upped the bank’s stock target to $308 per share, up from $287, while continuing to rate the stock as overweight—a firm endorsement to buy.
