What happened?

Shares of Royal Caribbean Cruises (NYSE:RCL), one of the world's largest cruise companies operating more than six brands in the cruise vacation industry, jumped more than 5% by 9:40AM EST after the company announced its mixed third-quarter results.

So what

The well-known cruise operator posted mixed results as its top-line revenue fell short of estimates, but its bottom-line earnings managed to top estimates. Royal Caribbean posted revenue of $2.57 billion during the third-quarter, which fell just shy of analysts' estimates calling for $2.58 billion. The cruise operator managed to post earnings per share of $3.49 despite the revenue shortfall, which topped analysts' estimates of $3.43 per share. Royal Caribbean's recent success can partly be attributed to the company's Double-Double program which was set to double the company's 2014 earnings per share by 2017 and increase return on invested capital (ROIC) to double digits.

Ovation of the Seas ship arriving into Sydney.

Ovation of the Seas arriving into Sydney. Image source: Royal Caribbean press center.

"We are only weeks away from crossing the finish line of our Double-Double program and I want to thank all of our employees for their remarkable efforts," said Richard D. Fain, chairman and CEO, in a press release. "The recent storms presented extraordinary challenges and I am extremely proud of the generosity, strength of character and sense of social responsibility displayed by our employees and the industry as a whole." 

Now what

In the short-term, management expects fourth-quarter adjusted earnings-per-share to check in between $1.15 to $1.20, which is slightly lower than analysts' estimates calling for $1.26 per share. But the year-to-date 55% run-up in share price, and even more over the past five years, emphasizes investors are buying into the long term and, looking ahead, management intends to do much of the same. Its 20/20 Vision strategy is focused on building modest dividend yield growth, strong cost control, and capacity growth over the long-term.

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.