United Airlines Holdings Inc UAL, will be reporting its fourth-quarter earnings on Monday, Jan. 22. Wall Street is expecting the company to report $1.70 in EPS and $13.53 billion in revenues, as it reports after market hours.
The company is a major airline known for its extensive domestic and international flight network. As one of the largest airlines globally, United is recognized for its widespread route coverage, modern fleet, and its frequent flyer program called MileagePlus. United Airlines’ stock is down over 19% over the past year.
Related: Why United Airlines (UAL) Stock Is Falling
Here's what analysts will be focusing on, and how the stock currently maps against Wall Street estimates.
Business & Fundamentals: United Airlines stands out for its strategic resilience and adaptability in the challenging airline industry. While the low-cost sector faces headwinds, United’s unique approach during the pandemic could potentially position it for future growth. Unlike competitors who retired aircraft, United maintained its fleet and staff, anticipating a swift demand rebound. This strategy paid off in 2022 when international demand surged, boosting the airline’s profitability.
The company’s financial performance, marked by robust capacity and revenue growth, strong earnings, and operational efficiency, enhances its investment attractiveness.
In 2024, United remains committed to aggressive growth plans with substantial fleet orders. The airline, along with Delta Air Lines Inc DAL has been emphasizing the significance of their capacity expansion.
Q4 Analysts' Focus: Analysts will be closely watching United Airlines’ near-term cash balance impacts. The airline has been actively investing in network expansion to fortify its market stance. Although these investments are crucial for sustaining competitiveness and ensuring future market leadership, their immediate financial implications will be closely scrutinized by analysts.
Ratings & Consensus Estimates: Consensus analyst ratings on United Airlines stock is a Buy with a price target of $69.26. Two analysts have upgraded the stock recently:
- Susquehanna’s Christopher Stathoulopoulos on Jan. 10 upgraded the stock to Positive with a price target of $60.
- On Jan. 9, BofA Securities’ Andrew Didora upgraded the stock from Underperform to Buy with a raised price target of $56 (from $40).
UAL Price Action: Shares of United Airlines were down 2.4% at $38.78 at the time of publication Friday.
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