Cruise giants' earnings comparison

What happened: On Wednesday, March 27, shares of Carnival (CCL), Royal Caribbean (RCL), and Norwegian Cruise Line (NCLH) surged, up 8%, 5%, and 5% respectively, following positive COVID-19 news. Despite strong bookings and earnings beats, CCL's stock fell after reporting due to concerns over rising fuel costs. RCL guided for $18 adjusted EPS in 2026, with two-thirds of its capacity already booked at record rates. NCLH appointed its CEO as Chairman and reached a cooperation agreement with Elliott Investment Management.

Market impact: The cruise industry experienced a mixed day, with stocks rallying on positive COVID-19 news but retreating due to fuel cost concerns. Higher oil prices pressured cruise lines' margins, leading analysts to lower price targets for CCL. Despite headwinds, analysts maintained 'Buy' ratings, citing earnings momentum and long-term outlook.

What to watch next: Investors should closely monitor CCL's and RCL's earnings calls in the coming weeks for further insights into fuel cost management strategies. Additionally, keep an eye on oil prices, as they could significantly impact the near-term performance of cruise stocks.