United Airlines ( NASDAQ: UAL ) stock flew higher in Tuesday’s extended session after cruising past analyst estimates for Q4 and forecasting further strength in 2023.
The carrier posted $2.13 in earnings per share on $12.4B in revenue. Analysts had anticipated $2.13 and $12.23B, respectively. An 11.1% operating margin for the quarter exceeded prior forecasts and topped 2019 levels by 200 basis points. Additionally, 64.3M available seat miles in the quarter came in above the consensus estimate of 64.17M.
Over the last three years, United has made critical investments in tools, infrastructure and our people – all of which are essential investments in our future,” CEO Scott Kirby commented. “That's why we've got a big head start, and we're now poised to accelerate in 2023 as our United Next strategy becomes a reality."
Management expects adjusted diluted earnings per share for the first quarter to range from $0.50 to $1.00, well above the $0.22 consensus. For the full year, the expectation of $10 to $12 in earnings per share also significantly exceeds the $6.42 consensus expectation. Fuel costs are also expected to continue declining into 2023.
Shares of the Chicago-based air carrier rose 4.36% shortly after the earnings update was posted.
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United Airlines stock soars after big bottom line beat, bullish forecast