Airline company United Airlines Holdings (NASDAQ: UAL) will be announcing earnings results this Wednesday after market close. Here’s what you need to know.
United Airlines beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $13.21 billion, up 5.4% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EPS estimates and a decent beat of analysts’ adjusted operating income estimates. It reported 59.52 billion revenue passenger miles, up 3.6% year on year.
Is United Airlines a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting United Airlines’s revenue to grow 2.5% year on year to $15.37 billion, slowing from the 5.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.81 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 11 downward revisions over the last 30 days (we track 13 analysts). United Airlines has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.9% on average.
Looking at United Airlines’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 9.5%, beating analysts’ expectations by 1.7%, and Delta reported flat revenue, topping estimates by 1.5%. Carnival traded up 5.9% following the results while Delta was also up 11.9%.
Read our full analysis of Carnival’s results here and Delta’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 7.8% on average over the last month. United Airlines is up 13.1% during the same time and is heading into earnings with an average analyst price target of $97.32 (compared to the current share price of $88.82).
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