(Bloomberg) -- Royal Caribbean Cruises Ltd.’s shares surged to a record after the cruise operator raised its earnings outlook for a fourth time this year and said it expects strong demand to continue.
The world’s most valuable cruise company boosted its adjusted earnings outlook to $11.57 to $11.62 per share this year, according to a statement Tuesday, above the average analyst projection of $11.51.
“We do not in any way see anything in the ingredients that say that we’re hitting some type of ceiling. If anything, we see continued acceleration in demand for our business,” Chief Executive Officer Jason Liberty said during a conference call with analysts.
The continuing strong demand means Royal Caribbean, whose shares have risen more than double its rivals this year, is able to charge more for its sailings. Liberty said earnings per share next year will be at least $14.
Shares jumped as much as 5.2% to a record. Peers Carnival Corp. and Norwegian Cruise Line Holdings Ltd. both rose by around 2%.
Still, Royal Caribbean’s fourth-quarter earnings forecast was lower than expected, and its third-quarter earnings beat was driven by lower costs rather than revenue, Truist Managing Director C. Patrick Scholes wrote in a note to clients.
Hurricane Milton, coupled with costs shifting from the third quarter, negatively impacted Royal Caribbean’s fourth-quarter forecast by 24 cents.
(Updates with managament and analyst commentary throughout.)
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