What: Shares of Royal Caribbean Cruises Ltd (NYSE:RCL) dropped 16% midday on Wall Street after the company reported fourth-quarter earnings.

So what: Revenue was up 4.4% in the quarter to $1.90 billion, but that fell short of the $1.96 billion analysts had expected. On the bottom line, net income rose from $109.8 million a year ago to $206.8 million, or $0.94 per share, $0.02 ahead of estimates.  

What concerned investors more was 2016 guidance of $5.90 to $6.10 per share in earnings, which was below analysts' consensus estimate of $6.27 per share. 

Now what: While missing estimates can often mean a bad day for a stock, it's important to put this miss into perspective. Revenue was up in the fourth quarter, and net income nearly doubled. As for 2016, the guidance figure is a big increase from earnings per share of $4.83 on an adjusted basis in 2015, so it isn't like Royal Caribbean is sailing backward.

With shares trading at just 11.9 times 2016 guidance, I think there's a good value for investors and lots of upside if the global economy improves later this year.

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.