Royal Caribbean (NYSE:RCL) reported its Q4 results on Tuesday, with EPS coming in at ($1.12), compared to the Street estimate of ($1.31). Revenue was $2.6 billion, roughly in line with the Street estimate of $2.61 billion. Following the earnings announcement, shares surged more than 7% on Tuesday.

The company and cruise peers are benefiting from strong demand and general price insensitivity across the broader travel vertical. It’s pretty clear that the company is operating at an extraordinarily high level right now, in terms of controlling costs while striking an optimal balance of pricing and volume growth.

The company expects Q1/23 EPS to be in the range of ($0.65)-($0.85), compared to the Street estimate of ($0.80). For fiscal 2023, the company expects EPS in the range of $3.00-$3.60, compared to the Street estimate of $3.25.