Why did RCL's Q4 2024 earnings fall short again?

Royal Caribbean Cruises Ltd. (RCL) experienced a decline in its Q4 2024 earnings, which can be attributed to a combination of factors: 1. **Hurricane-Related Costs**: The company incurred a $0.24 per share headwind in Q4 due to the impact of Hurricane Milton. Such natural disasters can lead to increased expenses related to disrupted operations and damaged property, negatively affecting the bottom line. 2. **Cost Timing Shifts and Stock Compensation Expenses**: Royal Caribbean faced a "several bps headwind" from cost timing shifts and higher stock compensation expenses. These factors, coupled with the hurricane-related impacts, contributed to the lower-than-expected earnings in Q4. 3. **Lower Q4 Guidance**: Despite strong third-quarter results, RCL's shares dropped due to Q4 earnings guidance that fell short of analyst expectations. The company provided a Q4 EPS guidance of $1.40-$1.45, which was below the $1.57 analysts had anticipated. This guidance reflected a more cautious outlook for the period, influencing investor sentiment and contributing to the earnings fall short. In summary, RCL's Q4 2024 earnings fell short primarily due to the impact of Hurricane Milton, cost timing shifts, and higher stock compensation expenses, along with lower-than-expected guidance. These factors combined to create a challenging environment for the company's financial performance during the quarter.