Market Overview

Earnings Outlook For United Airlines Holdings

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United Airlines Holdings (NASDAQ:UAL) announces its next round of earnings this Wednesday, January 20. Here is Benzinga's look at United Airlines Holdings's Q4 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on management's projections, United Airlines Holdings analysts modeled for a loss of $6.6 per share on sales of $3.44 billion. United Airlines Holdings earnings in the same period a year ago was $2.67 per share. Quarterly sales came in at $10.89 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Wednesday, earnings would be down 347.19%. Sales would be down 68.41% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate -7.44 -9.02 -3.47 2.65
EPS Actual -8.16 -9.31 -2.57 2.67
Revenue Estimate 2.54 B 1.32 B 8.22 B 10.88 B
Revenue Actual 2.49 B 1.48 B 7.98 B 10.89 B

Stock Performance

Shares of United Airlines Holdings were trading at $43.89 as of January 18. Over the last 52-week period, shares are down 46.51%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. United Airlines Holdings is scheduled to hold the call at 10:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings