United Airlines ( NASDAQ: UAL ) is scheduled to announce Q2 earnings results on Wednesday, July 20th, after market close.
The consensus EPS Estimate is $1.88 (+148.1% Y/Y) and the consensus Revenue Estimate is $12.11B (+121.4% Y/Y).
During the quarter, the company has discontinued flights to 25 smaller cities due to higher fuel prices and crew shortages.
Earnings History : The company missed Q1 expectation and provided Q2 operating margin outlook of 10% and RASM up about 17% vs. 2Q19. UAL expects to be profitable for FY2022.
Over the last 2 years, UAL has beaten EPS estimates 38% of the time and has beaten revenue estimates 50% of the time.
Over the last 3 months, EPS estimates have seen 14 upward revisions and 0 downward. Revenue estimates have seen 9 upward revisions and 0 downward.
Peer Delta ( DAL ) reported mixed Q2 earnings on last Wednesday but sees Q3 revenue between $12.6B to $13.1B vs. $12.5B consensus and expects double digit operating margin in the quarter with full year profitability. Overall, DAL is on track to achieve 2024 targets of over $7 EPS and $4B of free cash flow.
Analyst Rating : Susquehanna analyst Christopher Stathoulopoulos lowered the firm's price target on United Airlines to $43 from $60 and maintains a positive rating on the shares. The analyst said going into Q2 earnings he expects commentary from the US carriers to be positive but also believes a a "clearing event" is needed to get the stocks working again; specifically, downward revisions to FY22 and FY23 guidance for capacity and by extension, upward revisions to unit cost outlooks.
Barclays analyst Brandon Oglenski lowered price target on UAL to $45 from $58 and keeps an Equal Weight rating on the shares.
Exane BNP Paribas analyst James Hollins downgraded the stock to Underperform from Neutral with a price target of $33, down from $38.
Argus analyst John Staszak downgraded th to Hold from Buy and he is lowering his EPS estimates to reflect flight cancellations, pilot shortages and higher fuel prices. He notes that United has said it would eliminate 50 daily flights from Newark Liberty International Airport in order to increase the number of on-time arrivals and minimize long delays. While he believes that the company is well positioned to benefit from the current recovery in airline traffic, he expects demand for leisure travel in the U.S. to level off as the economy weakens and consumer confidence wanes.
Wall Street Analysts view the stock as a Buy , based on 6 of 20 analysts’ ratings of Strong Buy; 2 analysts ratings of Buy, 9 analysts ratings of Hold, the other 2 rates the stock at Hold and 1 analyst rating of Sell.
SA Quant rating systems also screens the stock with a Buy rating .
On YTD basis, stock slipped 10% . Shares up 4% ahead of earnings.
Recent earnings Analysis from our contributors: Is United Airlines Stock A Buy Before Upcoming Earnings? Focus On Future Profitability
A quick look at company's EPS surprise for past 12 quarters:
For further details see:
United Airlines Q2 Earnings Preview: what to expect amid higher fuel prices and crew shortages?