Here's What to Expect From United Airlines' Next…

Here's What to Expect From United Airlines' Next Earnings Report

Chicago, Illinois-based United Airlines Holdings, Inc. (UAL) operates as a major airline holding company, with a market cap of $18.8 billion. It provides air transportation services across North America and international destinations, offering passenger and cargo services, along with ancillary services such as catering and ground handling. The company is expected to unveil its fiscal Q3 earnings results for 2024 on Tuesday, Oct. 15.

Prior to the event, analysts anticipate UAL to report a profit of $3.06 per share, a 16.2% decline from $3.65 per share in the same quarter last year. Nevertheless, the company has consistently surpassed Wall Street's earnings projections over the last four quarters. In Q2, UAL exceeded the consensus estimate by a 4.3% margin.

For fiscal 2024, analysts expect UAL to report EPS of $9.78, down 2.7% from $10.05 in fiscal 2023. However, in fiscal 2025, EPS is expected to surge by a 12.8% margin, reaching $11.03.

On a YTD basis, UAL's shares have increased 37.7%, outperforming the S&P 500 Index's ($SPX) 19.7% gain and the Industrial Select Sector SPDR Fund's (XLI) 19% rise over the same period.

Despite reporting better-than-expected adjusted EPS of $4.14 on Jul. 17, shares of United Airlines fell 1.2% the following day as the company posted weaker-than-expected Q2 revenue and a soft Q3 EPS forecast of $2.75 to $3.25. The company cited overcapacity in the U.S. market, which led to price cuts, particularly in the budget segment. Additionally, rising labor and fuel costs added pressure to United’s profitability outlook, contributing to investor concerns.

Analysts' consensus rating on United Airlines stock is bullish, with a "Strong Buy" rating overall. Out of 20 analysts covering the stock, opinions include 17 "Strong Buys," one "Moderate Buy" and two "Holds." This consensus is slightly more bullish than three months ago, with 16 “Strong Buy” ratings on the stock.

The average analyst price target for UAL is $69.03, suggesting a potential upside of 22.8% from current levels.

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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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