Royal Caribbean And Carnival Shares Are Rising Thursday: What's Going On?

Royal Caribbean Cruises Ltd RCL shares are trading higher Thursday after the company reported better-than-expected first-quarter results. Shares of Carnival Corp CCL were moving in sympathy with Royal Caribbean, but has since sold off.

What Happened: Royal Caribbean reported first-quarter revenue of $2.88 billion, which beat consensus estimates of $2.82 billion, per Benzinga Pro. The cruise company reported a quarterly loss of 23 cents per share, which beat estimates for a loss of 70 cents per share. 

Royal Caribbean said its strong results were driven by strong close-in bookings at higher prices, continued strength of onboard spend and favorable timing of operating costs.

"We knew that demand for our business was strong and strengthening, but we have been pleasantly surprised with how swiftly demand further accelerated well above historical trends and at higher rates," said Jason Liberty, president and CEO of Royal Caribbean.

"Leisure travel continues to strengthen as consumer spend further shifts towards experiences. Demand for our brands is outpacing broader travel due to a strong rebound and an attractive value proposition."

Second-quarter net yields are expected to increase 9.6% to 10.1%. Adjusted earnings are expected to be in a range of $1.50 to $1.60 per share. 

Full-year net yields are expected to increase 6.25% to 7.25%. Full-year earnings are expected to be between $4.40 and $4.80 per share.

Royal Caribbean is the world's second-largest cruise company after Carnival. 

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RCL, CCL Price Action: Royal Caribbean shares were up 8.08% at $72.50 and Carnival shares were down 0.82% at $9.35 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Royal Caribbean.