Cruise Line Stocks Gained in Morning Trading. Carnival rose 9%; Norwegian Cruise Line rose 6%; Royal Caribbean and Viking rose over 3%.

Carnival raised its outlook for the year as it logged higher-than-expected profit and revenue in its fiscal second quarter, boosted by strong demand and consumer spending.

The Miami-based cruise line on Tuesday said it now expects full-year adjusted net income of $2.69 billion, or $1.97 a share, up from a prior outlook of $2.49 billion, or $1.83 a share. Analysts polled by FactSet expect adjusted net income of $2.58 billion, or $1.88 a share.

For the current quarter, Carnival guided for adjusted net income of $1.8 billion, or $1.30 a share, compared with Wall Street views for adjusted net income of $1.84 billion, or $1.33 a share.

Chief Executive Officer Josh Weinstein said travelers are looking to Carnival as their preferred vacation choice. "Even with the price increases we have achieved over the last few years, our tremendous value compared to land-based alternatives has supported our ability to continue demonstrating remarkable resilience amid heightened volatility," he said.

On-board spending and close-in demand, the latter of which accounts for last-minute bookings, were strong during the recent quarter, Weinstein added. Looking forward, he said the company's booking curve "continues to be the furthest out on record."

For its three months ended May 31, Carnival posted net income of $565 million, or 42 cents a share, compared with $92 million, or 7 cents a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings came in at 35 cents, topping the 25 cents that analysts projected.

Revenue rose 9.5% to $6.33 billion. Analysts modeled revenue of $6.21 billion.