Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Royal Caribbean Cruises (NYSE: RCL) shares jumped 13% in early trading after the company released earnings.

So what: The company reported net income of $356.8 million, or $1.64 per share, up from $1.07 per share a year ago. It also increased guidance and said it would likely set an earnings record in 2011.

Now what: The high seas have been good to Royal Caribbean, and conditions look positive for the foreseeable future. Given the increased guidance, a forward price/earnings ratio of 14.3 is making this stock look relatively cheap. I always like to see an earnings beat followed by increased guidance, so I'm buying today's move higher.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.