Is United Airlines Stock Finally Ready to Take Off?
United Airlines released better than expected fourth-quarter financial results after markets closed Tuesday.
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United Airlines Holdings Inc. (NASDAQ: UAL) released fourth-quarter financial results after markets closed Tuesday. The airline said that it had $2.67 in earnings per share (EPS) and $10.89 billion in revenue, compared with consensus estimates that called for $2.65 in EPS and $10.88 billion in revenue. The same period of last year reportedly had $2.41 in EPS and $10.49 billion in revenue.
Consolidated fourth-quarter passenger revenue per available seat mile increased 0.8% year over year. At the same time, the consolidated fourth-quarter unit cost per available seat mile decreased by 1.3%.
In terms of its segments, United reported as follows:
- Passenger revenue increased by 3.9% to $9.93 billion.
- Cargo revenue decreased 5.4% to $316 million.
- Other operating revenues increased 6.3% to $639 million.
United issued no guidance in the release but said that it would discuss the outlook on the conference call Wednesday morning. Consensus estimates are calling for $4.60 in EPS and $11.93 billion in revenue for the first quarter.
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Oscar Munoz, CEO of United Airlines, commented:
2019 was a great year for our United team — highlighted by achieving our $11 to $13 adjusted EPS target a full year ahead of schedule. With a four-quarter streak of expanding profit margins, when all the results are in we expect our full year 2019 pre-tax margin growth to be the highest amongst our largest competitors. When I look at United’s fundamental strength, I could not be prouder of what we’ve accomplished in such a short time. This is the New United we set out to build more than four years ago. As we embark on a new year and decade, I believe the outlook for United’s future has never been brighter.
Shares of United Airlines closed Tuesday at $85.79, in a 52-week range of $77.02 to $96.03. The consensus price target is $111.06. Following the announcement, the stock was up 1% at $86.64 in early trading indications Wednesday.
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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.
