Why United Continental Earnings Are Taking Off
Shares of United Continental rose after it reported better-than-expected quarterly results late on Tuesday.
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When United Continental Holdings Inc. (NYSE: UAL) reported its most recent quarterly results after the markets closed on Tuesday, the airline operator said that it had $3.23 in earnings per share (EPS) and $10.78 billion in revenue. The consensus estimates had called for $3.06 in EPS and $10.72 billion in revenue, and it the second quarter of last year, EPS were $2.75 and revenue at $10.0 billion.
During the latest quarter, consolidated passenger revenue per available seat mile (PRASM) increased 3.0% year over year. Also, consolidated total revenue per available seat mile (TRASM) increased 2.8% year over year.
Consolidated unit cost per available seat mile (CASM) increased 7.1% year over year. Consolidated CASM, excluding special charges, third-party business expenses, fuel and profit sharing, decreased 0.4%.
In terms of guidance, United expects to see full-year EPS in the range of $7.25 to $8.75, while consensus estimates are $7.70 in EPS on $40.6 billion in revenue for 2018.
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Oscar Munoz, CEO of United Airlines, commented:
We delivered great financial results and strong operational performance in the second quarter despite the significant headwind of higher fuel prices. These results are the strongest evidence yet that our strategic growth plan is working, and we are well positioned to carry our momentum into the second half of the year.
Shares of United traded up more than 5% early Wednesday at $76.74, with a consensus price target of $84.73 and a 52-week trading range of $56.51 to $79.00.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
