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
-
Visa Is the Worst Dow Stock Wednesday. Here's WhyVisa stock is down sharply Wednesday after the credit card company came up short of revenue expectations for its fiscal Q3.
-
Another Analyst Moves to the Sidelines on Tesla Stock After EarningsTesla stock is spiraling Wednesday after the EV maker's big earnings miss and Wall Street has been quick to weigh in. Here's what you need to know.
-
Visa Is the Worst Dow Stock Wednesday. Here's Why
Visa stock is down sharply Wednesday after the credit card company came up short of revenue expectations for its fiscal Q3.
-
Tesla Stock: Another Analyst Moves to the Sidelines After Earnings
Tesla stock is spiraling Wednesday after the EV maker's big earnings miss and Wall Street has been quick to weigh in. Here's what you need to know.
-
Alphabet Stock Falls as Q2 Ad Revenue Growth SlowsAlphabet stock is trading lower Wednesday as slowing ad sales growth offsets a Q2 earnings beat. Here's what you need to know.
-
Stock Market Today: Stocks Slip Ahead of Mega-Cap EarningsGE Aerospace shares soared after earnings while United Parcel Service stock slumped.
-
Is GE Stock Still a Buy After Big Earnings Beat?GE stock is higher Tuesday after the industrial giant's beat-and-raise quarter, but what do analysts think? We take a closer look here.
-
UPS Stock Heads Toward Worst Day Ever After EarningsUPS stock is down big after coming up short of analysts’ expectations for its second quarter and cutting its outlook. Here’s what you need to know.
-
Spotify Stock Surges After Q2 Earnings Beat: What to KnowSpotify stock is flying higher Tuesday after the streaming giant reported its second-quarter earnings results. Here's what you need to know.
-
Stock Market Today: Mega-Cap Tech Rallies to Drag Markets HigherMarkets focused on upcoming earnings from Magnificent 7 stocks rather than chaos in D.C.
