It's probably a good time to take another look at Royal Caribbean (NYSE: RCL) after another "beat and raise" performance on Thursday. The country's second-largest cruise line operator exceeded expectations and boosted its full-year outlook, but its shares are still down 27% from where they peaked this summer. 

Royal Caribbean is doing better than you probably think. It's also cheaper than you think, now trading for just 12 times its revised profit target for this year. Let's take a look at the fresh financials and the potential red flags, but also the opportunity for Royal Caribbean shareholders. 

Revenue in Q3 soared 39% to $4.16 billion, driven by a combination of a 46% surge in ticket revenue and a 25% jump in onboard and other revenue. The year-over-year comparisons will be kind for the industry given that a year ago, cruise lines were still recovering from pandemic and international travel restrictions, but Royal Caribbean still landed comfortably ahead of the $4.05 billion that analysts were expecting. Its record revenue results for the seasonally important summertime period also happen to be 31% higher than the previous record, which was set in the third quarter of 2019. If you thought that cruising would fade in popularity after those ships were first shuttered, and then heavily restricted in their operations for more than a year due to the COVID-19 crisis, you were wrong.

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Source Fool.com