Royal Caribbean beat earnings estimates in the second quarter and hiked its full-year guidance but the stock was falling more than 6% ahead of the open Tuesday.

The cruise operator reported adjusted earnings per share of $4.21, ahead of analysts' expectations of $3.98. The beat was driven by strong close-in, or last-minute, demand and lower costs, the company said.

Royal Caribbean raised its full-year EPS guidance to between $17.73 and $17.87, up from a range of $17.10 to $17.50. The hike was down to better-than-expected performance in the second quarter and improved outlook for the rest of the year.

But the stock was pointing 6.6% lower at $285 in premarket trading. It's not a total disaster -- the shares have jumped 7.6% in the past two trading days as oil prices fell sharply. If the move holds, the stock would stay above the level at which it closed on Thursday.

The stock's recent run may be one reason behind the reaction -- the shares have jumped 19% over the past three months, through Monday.

Also, once the 23 cents-per-share earnings beat is factored in, the full-year hike of 50 cents per share doesn't seem like all that much improvement over the second half.

With a 20% recent rally, investors may have been expecting more.

This is breaking news. Read a preview of Royal Caribbean's earnings below and check back for more analysis soon.

Cruise stocks have entered choppy waters lately but Royal Caribbean's earnings Tuesday could mark a return to smoother sailing.

The sector has been at the whim of oil prices for much of the year and as a result has had a challenging 2026. Royal Caribbean is up more than 5% this year but its biggest rivals Carnival and Norwegian Cruise Line are down around 10%.

Sharp falls in oil prices in recent days have helped the stocks but earnings will chart the path ahead for the rest of the year.

Analysts are expecting earnings of $3.98 per share, down from $4.38 in the second quarter of 2025 but ahead of Royal Caribbean's own guidance for between $3.83 and $3.93 issued at the end of April. They expect revenue of $4.8 billion.

"The cruise narrative has been a moving target," Melius Research analyst Conor Cunningham wrote Sunday.

He noted that cruise stocks were underperforming the market for the first time post-Covid pandemic. However, he added that cruise stocks were on a "positive long-term trajectory" even if they were currently working through near-term noise.

Guidance and demand commentary will be key. Wall Street is looking for strong numbers in the third quarter, expecting EPS of $6.26 on revenue of $5.6 billion.

Keep an eye out for changes to the full-year guidance. The analyst consensus is for EPS of $17.32, right in the middle of the cruise operator's $17.10 to $17.50 range.

Another thing that could boost the stock would be positive news on the company's Perfect Day Mexico private destination. The Mexican government blocked the project back in May, hitting the stock.

However, Royal Caribbean announced plans to develop a community center in the nearby area last week.

"We think this is an interesting announcement and view it as a concession to the government of Mexico and a potential step towards getting the Perfect Day Mexico project back on track," BNP Paribas analyst Xian Siew said in a note last week.

"If Perfect Day Mexico is back in play, this would be a positive catalyst for the stock as we think the market is discounting this possibility," he added.

Siew has a Buy rating on the stock with a price target of $357.

Norwegian is set to report earnings on Thursday, with Carnival expected to report in the fall.