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Valued at a market cap of $31.5 billion, United Airlines Holdings, Inc. (UAL) provides air transportation services and transports people and cargo through its mainline and regional fleets. The Chicago, Illinois-based company also offers catering, ground handling, flight academy, and maintenance services. It is expected to announce its fiscal Q4 earnings results on Monday, Jan. 27.
Ahead of this event, analysts project the airline company to report a profit of $2.97 per share, up 48.5% from $2 per share in the year-ago quarter. The company has a solid track record of consistently beating Wall Street's bottom-line estimates in the last four quarters. In Q3, UAL’s adjusted EPS outpaced the consensus estimates by a notable margin of 7.4%.
For fiscal 2024, analysts expect UAL to report an EPS of $10.31, up 2.6% from $10.05 in fiscal 2023. Furthermore, in fiscal 2025, EPS is expected to grow 15.2% year-over-year to $11.88.
Shares of UAL have skyrocketed significantly over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 26.3% rise and the Industrial Select Sector SPDR Fund’s (XLI) 19.4% return over the same time frame.
Shares of UAL surged 12.4% following its better-than-expected Q3 earnings release on Oct. 15. The company’s top-line increased 2.5% year-over-year to $14.8 billion and marginally outpaced the consensus estimates. Upbeat air travel demand reflected by a 13% rise in corporate revenues and a 20% increase in revenue from the basic economy led to its top-line growth. Meanwhile, its adjusted EPS of $3.33 declined 8.8% annually but outpaced the consensus estimates by a notable margin. A 13.2% annual decline in average aircraft fuel price per gallon to $2.56 primarily contributed to its bottom-line beat, while, higher operating expenses led to its year-over-year decline.
Overall, analysts are bullish about United Airlines’ stock, with a "Strong Buy" rating overall. Among 21 analysts covering the stock, 20 recommend a "Strong Buy" and one suggests a "Moderate Buy." This configuration is more bullish than three months ago when 15 analysts suggested a "Strong Buy."
The average analyst price target for UAL is $113.14 indicating a 18.3% potential upside from the current levels.
