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Shares of Carnival, Norwegian Cruise Line, and Royal Caribbean all sport hefty double-digit gains over the last month, although they are down for the year. A potential vaccine has sparked customer and investor interest.

During Q3, Carnival (NYSE: CCL) brought in sales totaling $31.00 million. However, earnings decreased 44.16%, resulting in a loss of $2.33 billion. In Q2, Carnival brought in $740.00 million in sales but lost $4.18 billion in earnings.What Is Return On Capital Employed? Changes in earnings and sales indicate shifts in Carnival's Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed by a business. Generally, a higher ROCE suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q3, Carnival posted an ROCE of -0.12%.It is important to keep in mind ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but several factors could affect earnings and sales in the near future.View more earnings on CCLReturn on Capital Employed is an important measurement of efficiency and a useful tool when comparing companies that operate in the same industry. A relatively high ROCE indicates a company may be generating profits that can be reinvested into more capital, leading to higher returns and growing EPS for shareholders.For Carnival, the return on capital employed ratio shows the current amount of assets may not actually be helping the company achieve higher returns, a note many investors will take into account when making long-term financial decisions.Q3 Earnings Recap Carnival reported Q3 earnings per share at $-2.19/share, which beat analyst predictions of $-2.2/share.See more from Benzinga * Click here for options trades from Benzinga * 10 Consumer Discretionary Stocks Showing Unusual Options Activity In Today's Session * 10 Consumer Discretionary Stocks Showing Unusual Options Activity In Today's Session(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Maintaining its status as the number-one cruise line for explorations to The Last Frontier, Holland America Line was named the top pick for Alaska cruises in the 2020 AFAR Travelers' Awards. This is the third time the cruise line has won the Alaska category in the award's five-year existence.

Shares of cruise operators surged toward multi-month highs Thursday, after BofA Securities analyst Andrew Didora boosted his price targets, and as recent...

Cruise lines were some of the hardest hit stocks in the market during the pandemic sell-off in early 2020, but they've been some of the top performers since the market bottomed.Cruises won't be resuming until 2021, but one analyst raised his price targets for cruise stocks based on increasing optimism about 2022 and beyond.The Analyst: Bank of America analyst Andrew Didora made the following price target adjustments on Thursday: * Carnival Corp (NYSE: CCL) reiterated a Neutral rating, price target raised from $15 to $22. * Royal Caribbean Cruises Ltd (NYSE: RCL), reiterated Neutral rating, price target raised from $34 to $60. * Norwegian Cruise Line Holdings Ltd (NYSE: NCLH) reiterated Underperform rating, price target raised from $18 to $25. * Related Link: Cruise Stocks Sink After CDC Lifts Ban, Analyst Says New Guidelines Delay RecoveryThe Thesis: Didora highlighted some of the pros and cons of investing in cruise stocks at this point.Pros include the fact that cruise stocks are a pure play on a return to leisure activity, and the potential for highly effective coronavirus vaccines could put prior peak earnings back in play.Cons to investing in cruise stocks include a long path to revenue recovery and the need to potentially raise additional capital in the meantime. Didora is projecting revenue-generating cruise services will begin again in March based on the latest CDC requirements. Between now and then, Didora said the cruise lines will continue to pile on more net debt to stay afloat."With a delay in revenue service, additional capital is key, and balance sheet stress could continue," Didora wrote in the note.Bank of America is projecting 2021 year-end net debt for Carnival, Royal Caribbean and Norwegian will be 100%, 77% and 47% higher than 2019 levels, respectively. At the same time, diluted share counts will also be 56%, 6% and 46% higher, respectively.Benzinga's Take: The three cruise stocks are all up at least 80% since the March market low, which is a huge run for three businesses that are still dead in the water until at least March. The ultimate fate of the industry will be determined by how long it takes the leisure travel business to recover and whether or not the pandemic has permanently changed consumer demand.See more from Benzinga * Click here for options trades from Benzinga * Michael Burry Of 'The Big Short' Fame Confirms He's Shorting Tesla * Option Trader Bets .5M On Facebook Despite Trump's Section 230 Threat(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Carnival Cruise Line is informing guests and travel agents that it has cancelled select itineraries for specific operations in 2021, as it implements its plans for the resumption of cruising in 2021, including cruise operations in February from Miami, Port Canaveral and Galveston and moving the inaugural sailing of Mardi Gras until April 24, 2021.

Norwegian (NCLH) has extended suspension on all voyages for Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises to meet the guidelines for conditional sailing.