NEW YORK (TheStreet) -- Royal Caribbean Cruises (RCL) - Get Royal Caribbean Group Report stock is surging by 4.72% to $79.64 in mid-afternoon trading on Wednesday, after rival cruise operator Carnival (CCL) reported a 2016 first quarter earnings and revenue beat.
The strong quarter was propelled by higher ticket prices and lower fuel costs, and Carnival noted that there had been no significant impact to tourist activity following last week's attacks in Brussels, Reuters reports.
Additionally, the company boosted the lower end of its full-year earnings forecast, which signals underlying strength within its business since Carnival rarely hikes its full-year guidance, Nomura analyst Harry Curtis wrote in a note, Reuters adds.
"It looks like the [Zika virus] was not even a factor," TheStreet's Jim Cramer said of the financial results on CNBC's "Squawk on the Street" this morning. "I did not think this would happen."
Shares of Carnival are up by 4.53% to $51.89 this afternoon.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
Royal Caribbean's strengths such as its increase in net income, revenue growth, reasonable valuation levels, good cash flow from operations and expanding profit margins outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: RCL
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.