United Airlines (UAL) stock is flying higher Wednesday after the company beat analysts' top- and bottom-line estimates for its first quarter.
In the three months ended March 31, United's total operating revenue increased 9.7% year-over-year to $12.5 billion while its per-share loss narrowed to 15 cents from 63 cents in the year-ago period.
However, it added that its first-quarter results reflected an impact of approximately $200 million from the grounding of the Boeing 737 MAX 9. Without this impact, the company said it would have reported a quarterly profit.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
United's results exceeded analysts’ expectations, which called for revenue of $12.45 billion and a loss of 57 cents per share, according to CNBC.
The results also beat the guidance United provided for the first quarter, which called for a loss of 35 cents to 85 cents per share.
As a result of its strong performance in the first quarter, United reiterated its full-year forecast for EPS to arrive between $9 and $11.
"I want to thank the United team for working so hard this quarter to deliver strong operational metrics for our customers and sharpen our focus on safety, while producing excellent financial results for our shareholders," United Airlines CEO Scott Kirby said in a statement. "We've adjusted our fleet plan to better reflect the reality of what the manufacturers are able to deliver. And, we'll use those planes to capitalize on an opportunity that only United has: profitably grow our mid-continent hubs and expand our highly profitable international network from our best in the industry coastal hubs."
For the second quarter, United expects earnings in the range of $3.75 per share to $4.25 per share, which exceeds the consensus analyst estimate of $3.71 per share.
Analysts see more upside for UAL stock
Analysts are overwhelmingly bullish on the industrial stock. According to S&P Global Market Intelligence, the consensus analyst target price for UAL stock is $62.46, representing an upside of more than 30% from current levels. Additionally, the consensus recommendation is Buy.
Speaking for the bulls is Argus Research analyst John Staszak, who maintained a Buy rating on United Airlines stock after earnings.
"We expect demand for air travel to continue its post-pandemic recovery, with strong growth in international travel, and look for higher revenues to outweigh inflationary headwinds," Staszak says. "We also expect the company to benefit from constrained industry capacity due to the grounding of the Boeing 737 MAX 9."
Related Content
-
Stock Market Today: Stocks Hit Record High Ahead of CPI ReportEquities caught a bid ahead of the all-important September reading on consumer price inflation.
-
How to Create a Retirement Plan That Checks All Your BoxesYou might consider starting with a model retirement plan that has already been assembled and is ready to be refined to meet your objectives.
-
Why Gen X Marks the Spot for Rethinking RetirementRetirement plans that worked for Baby Boomers may not fit the bill for Gen Xers. If you're nearing 60, it's time to bring your retirement strategy up to date.
-
Want to Turn Your Tax Bill Into a Refund? What to Do NowA few easy steps can help you avoid writing a check to the IRS. And if your most recent refund was a whopper, you might want to consider a few adjustments.
-
FTC Cracks Down: Fake Reviews Officially a No-NoCompanies can no longer buy and post online reviews that aren't by actual customers — and there's a hefty fine involved. Here's what to watch for.
-
Stock Market Today: Tech Leads Stocks to Broad-Based GainsRisk appetite came back with a vengeance as oil and bonds took a breather.
-
Election Could Reshape Opportunity Zones and 1031 ExchangesTrump and Harris have divergent approaches to qualified opportunity zones and 1031 exchanges. See how each could fare under their administrations.
-
Six Reasons to Have Life InsuranceThe peace of mind from knowing your family is financially protected if something happens to you is invaluable, but there are other compelling reasons, too.
