Petr Huřťák
2 min read
Airline company United Airlines Holdings (NASDAQ:UAL) will be reporting earnings this Tuesday after the bell. Here’s what investors should know.
United Airlines met analysts’ revenue expectations last quarter, reporting revenues of $17.67 billion, up 16% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a miss of analysts’ EBITDA estimates. It reported 72.77 billion revenue passenger miles, up 3.8% year on year.
Is United Airlines a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting United Airlines’s revenue to grow 17.5% year on year, improving from the 2.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. United Airlines has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at United Airlines’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 3.5%, beating analysts’ expectations by 1.1%, and Delta reported revenues up 21.1%, topping estimates by 4.1%. Carnival traded up 10.8% following the results while Delta was down 2.5%.
Read our full analysis of Carnival’s results here and Delta’s results here.
Investors in the consumer discretionary segment have had fairly steady hands going into earnings, with share prices down 1.3% on average over the last month. United Airlines is down 15.9% during the same time and is heading into earnings with an average analyst price target of $152.48 (compared to the current share price of $96.23).
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