Royal Caribbean Cruises Ltd ( RCL ) shares are trading higher Tuesday in sympathy with shares of Carnival Corp ( CCL ) , which jumped after the company reported better-than-expected quarterly results.

What Happened With CCL: Carnival reported second-quarter revenue of $5.781 billion, beating analyst estimates of $5.675 billion, according to Benzinga Pro. The cruise company reported adjusted earnings of 11 cents per share, which easily beat estimates for a loss of 2 cents per share.

Carnival also guided for third-quarter adjusted earnings of approximately $1.15 per share versus estimates of $1.10 per share, highlighting “continued strong demand trends.” Third-quarter adjusted EBITDA is expected to be up 20%. The company expects net yields to be up about 8% in the third quarter and about 10.25% for full-year 2024.

“We have made incredible strides in improving our commercial operations, strategically reallocating our portfolio composition and formulating growth plans, while strengthening even further our global team, the best in the business,” said Josh Weinstein, CEO of Carnival.

“Off the back of that effort, we closed yet another quarter delivering records, this time across revenues, operating income, customer deposits and booking levels, exceeding our guidance on every measure.”

Why It Matters: Royal Caribbean is due to report earnings for the second quarter in July. The company is expected to report EPS of $2.74 on revenue of $4.034 billion, according to estimates from Benzinga Pro.

Carnival is the largest global cruise company with 92 ships in service at the end of fiscal 2023. Royal Caribbean is the world’s second-largest cruise company, operating 65 ships across five global and partner brands in the cruise vacation industry.

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RCL Price Action: Royal Caribbean shares were up 3.64% at $160.15 at the time of publication, according to Benzinga Pro.