As we discuss in more detail below, its topline performance has been much less impressive. However, RCL is certainly not a topline growth story at this stage, but rather, its operating leverage, cost management, and execution are the key factors that most investors are focusing in on. And that is where RCL has been excelling, evidenced by its impressive earnings winning streak and the stock's 43% gain so far this year.
Taking a closer look at its Q2 results, RCL reported EPS of $1.71, beating the Capital IQ consensus by $0.04. On a year/year basis, Non-GAAP EPS grew by a healthy 57%, despite revenue growing by a modest 4% to $2.19 billion, virtually inline with expectations. The double-digit earnings growth was mainly driven by cost containment once again as gross cruise costs, excluding fuel, were down 0.9% on a constant currency basis.
Additionally, gross yields were up 10.2% and net yields increased 11.5%. Those yields exceeded its prior guidance and was driven by strong close-in demand, resulting in higher pricing and occupancy. Specifically, occupancy came in at 108.7% compared to 104.6% in the year ago quarter, with passengers carried increasing by 2.1% to 1.4 million. What's especially encouraging and positive for RCL is that occupancy should remain very strong going forward as its booked position for the remainder of 2017 is setting new records and its booked position for the next twelve months is also strong, higher in both rates and volume versus last year.
With that healthy demand in place, RCL issued upside Q3 EPS guidance of $3.45 vs. the $3.30 Capital IQ consensus, and, issued upside FY17 EPS guidance of $7.35-$7.45 vs. the $7.25 consensus. This puts the company on target to reach its "Double/Double" targets -- achieving Adjusted EPS of at least $6.78 in 2017 (double its FY14 EPS), and ROIC of 10% in 2017, compared to 5.9% in 2014.
In summary, while RCL hasn't been knocking the cover off the ball in terms of revenue growth, and it has under-performed a bit there relative to estimates, it is more than offsetting that by keeping a tight lid on costs and executing well. If it can continue to operate as efficiently as it has, the outlook for the remainder of this year looks promising given that demand seems to be on the rise.