Airline company United Airlines Holdings (NASDAQ: UAL) will be reporting earnings this Tuesday afternoon. Here’s what to look for.
United Airlines met analysts’ revenue expectations last quarter, reporting revenues of $15.4 billion, up 4.8% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a slight miss of analysts’ EBITDA estimates. It reported 68.25 billion revenue passenger miles, up 5.9% 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 9.3% year on year, improving from the 5.4% 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 to 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 Q1 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 6.1%, meeting analysts’ expectations, and Delta reported revenues up 12.9%, topping estimates by 4%. Carnival traded down 5.2% following the results while Delta was up 3.4%.
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 11.8% on average over the last month. United Airlines is up 9.2% during the same time and is heading into earnings with an average analyst price target of $130.17 (compared to the current share price of $102.58).
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