United Airlines Holdings UAL is gearing up to announce its quarterly earnings on Tuesday, 2024-10-15. Here's a quick overview of what investors should know before the release.
Analysts are estimating that United Airlines Holdings will report an earnings per share (EPS) of $3.07.
Anticipation surrounds United Airlines Holdings's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Performance in Previous Earnings
The company's EPS beat by $0.19 in the last quarter, leading to a 1.17% drop in the share price on the following day.
Here's a look at United Airlines Holdings's past performance and the resulting price change:
| Quarter | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|
| EPS Estimate | 3.95 | -0.56 | 1.7 | 3.35 |
| EPS Actual | 4.14 | -0.15 | 2 | 3.65 |
| Price Change % | -1.0% | 17.0% | 5.0% | -10.0% |
Performance of United Airlines Holdings Shares
Shares of United Airlines Holdings were trading at $61.8 as of October 11. Over the last 52-week period, shares are up 57.48%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analysts' Perspectives on United Airlines Holdings
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on United Airlines Holdings.
A total of 3 analyst ratings have been received for United Airlines Holdings, with the consensus rating being Buy. The average one-year price target stands at $75.0, suggesting a potential 21.36% upside.
Analyzing Analyst Ratings Among Peers
This comparison focuses on the analyst ratings and average 1-year price targets of Southwest Airlines, Delta Air Lines and LATAM Airlines Group, three major players in the industry, shedding light on their relative performance expectations and market positioning.
- As per analysts' assessments, Southwest Airlines is favoring an Neutral trajectory, with an average 1-year price target of $27.77, suggesting a potential 55.06% downside.
- For Delta Air Lines, analysts project an Outperform trajectory, with an average 1-year price target of $63.29, indicating a potential 2.41% upside.
- For LATAM Airlines Group, analysts project an Outperform trajectory, with an average 1-year price target of $36.67, indicating a potential 40.66% downside.
Peer Analysis Summary
The peer analysis summary provides a snapshot of key metrics for Southwest Airlines, Delta Air Lines and LATAM Airlines Group, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| United Airlines Holdings | Buy | 5.70% | $4.80B | 13.42% |
| Southwest Airlines | Neutral | 4.50% | $1.49B | 3.60% |
| Delta Air Lines | Outperform | 1.22% | $3.83B | 9.77% |
| LATAM Airlines Group | Outperform | 13.31% | $636.83M | 25.59% |
Key Takeaway:
United Airlines Holdings is positioned at the top for Revenue Growth among its peers. It ranks in the middle for Gross Profit. In terms of Return on Equity, it is positioned at the bottom compared to its peers.
Unveiling the Story Behind United Airlines Holdings
United Airlines is a major us network carrier with hubs in San Francisco, Chicago, Houston, Denver, Los Angeles, New York/Newark, and Washington, D.C. United operates a hub-and-spoke system that is more focused on international and long-haul travel than its large U.S. peers.
United Airlines Holdings: Delving into Financials
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Positive Revenue Trend: Examining United Airlines Holdings's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.7% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.
Net Margin: United Airlines Holdings's net margin excels beyond industry benchmarks, reaching 8.83%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): United Airlines Holdings's ROE excels beyond industry benchmarks, reaching 13.42%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.82%, the company showcases effective utilization of assets.
Debt Management: With a below-average debt-to-equity ratio of 3.0, United Airlines Holdings adopts a prudent financial strategy, indicating a balanced approach to debt management.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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