United Airlines Set to Announce Q4 Earnings Amid Growing Optimism
With a market cap of $31.5 billion, United Airlines Holdings, Inc. (UAL) is a major player in air transportation, providing services for both passengers and cargo from its base in Chicago, Illinois. The company also offers catering, ground handling, flight academy, and maintenance services. Investors are eagerly awaiting the fiscal Q4 earnings results, scheduled for announcement on Monday, Jan. 27.
Prior to this earnings release, analysts forecast that UAL will report a profit of $2.97 per share. This marks a significant increase of 48.5% compared to $2 per share in the same quarter last year. Historically, United Airlines has exceeded Wall Street’s earnings expectations. In the previous quarter, its adjusted earnings per share exceeded estimates by 7.4%.
For fiscal 2024, projections indicate UAL will achieve an earnings per share (EPS) of $10.31, reflecting a 2.6% rise from $10.05 in fiscal 2023. Looking ahead to fiscal 2025, EPS is expected to increase by 15.2% to $11.88.
In the past year, UAL’s shares have surged, outperforming the S&P 500 Index (up 26.3%) and the Industrial Select Sector SPDR Fund (up 19.4%).
Shares rose 12.4% after the company reported better-than-expected Q3 earnings on Oct. 15. United’s revenue grew by 2.5% year-over-year, reaching $14.8 billion, which slightly exceeded consensus estimates. Increased demand for air travel was evident, with corporate revenues up 13% and basic economy revenue rising by 20%. Although the adjusted EPS of $3.33 declined by 8.8% compared to the previous year, it still beat estimates. The annual drop in average fuel prices, now at $2.56 per gallon, helped the company navigate higher operating expenses.
Analysts maintain a positive outlook on United Airlines’ stock, granting it a “Strong Buy” rating overall. Out of 21 analysts analyzing the stock, 20 recommend a “Strong Buy” while one suggests a “Moderate Buy.” This sentiment has improved significantly from just three months ago, when only 15 analysts backed the “Strong Buy” position.
The average analyst price target for UAL stands at $113.14, indicating an 18.3% potential upside from current stock levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
