RCL next earnings report expectations

What happened: Royal Caribbean Cruises (RCL) is set to report its second-quarter results on July 28. Analysts anticipate a 9% decline in adjusted earnings per share. Norwegian Cruise Line (NCLH), RCL's rival, recently beat second-quarter guidance, with adjusted EBITDA reaching $666 million and adjusted EPS at $0.48. Carnival (CCL), another competitor, reported earnings on June 23, and RCL is expected to follow suit on July 28, with NCLH reporting on July 30.

Market impact: The cruise industry has rebounded post-pandemic, with RCL trading at a market premium to its peers. However, RCL's high long-term debt and potential earnings decline may impact its valuation. NCLH's strong second-quarter performance could influence investor sentiment towards the sector. CCL's ongoing turnaround and debt concerns also affect the market dynamics.

What to watch next: RCL's earnings report on July 28 will drive the narrative, with guidance being the key stock driver. NCLH's earnings report on July 30 will provide further insight into the sector's performance. Additionally, investors should monitor the ongoing geopolitical tensions and their impact on fuel costs and passenger demand, as these factors could influence the cruise industry's recovery.