Predicted Earnings Surge for United Airlines
Wall Street analysts have forecasted that United Airlines (UAL) will announce quarterly earnings of $0.80 per share, marking a staggering 633.3% increase compared to the same quarter last year. Revenue estimates stand at $13.48 billion, indicating a year-over-year growth of 7.5%. However, this reflects a 12% downward adjustment in the consensus earnings per share (EPS) estimate over the past month, suggesting that analysts have re-evaluated their predictions for the airline’s performance. It is important for investors to consider adjustments in earnings estimates prior to a company’s earnings report, as these changes can significantly influence investor sentiment and stock performance. Numerous studies have shown a strong correlation between the changes in earnings estimates and a stock’s short-term price behavior. While investors typically lean on consensus estimates for earnings and revenue to gauge a company’s quarterly performance, delving into specific analyst forecasts can provide deeper insights.
Operating Revenue Expectations
Analysts anticipate that the ‘Operating revenue – Passenger revenue’ for United will reach approximately $12.11 billion, reflecting a growth of 7.1% from the previous year. Additionally, the collective analysis suggests that ‘Operating revenue – Other operating revenue’ will amount to $857.49 million, indicating a 2.7% increase from the same quarter last year. For ‘Operating revenue – Cargo’, analysts project a total of $425.38 million, representing an 8.8% year-over-year rise. Furthermore, the ‘Passenger load factor – Consolidated’ is expected to hit 82.5%, up from the 80.1% reported in the prior year’s quarter.
Revenue Metrics and Projections
The consensus among analysts is that ‘Total revenue per available seat mile (TRASM)’ will reach 18.01 cents, a slight increase from last year’s 17.5 cents. Analysts also estimate that ‘CASM-ex’ (which excludes special charges, third-party business expenses, fuel, and profit sharing) will amount to 13.54 cents, an increase from 13.13 cents reported in the same quarter last year. Expectations for ‘ASMs (Available seat miles)’ are set at 74.19 billion, up from 71.67 billion in the previous year. Additionally, analysts forecast ‘PRASM (Passenger revenue per available seat mile)’ to reach 16.30 cents, compared to last year’s 15.79 cents.
Revenue Passenger Miles and Fuel Consumption Insights
The consensus estimate for ‘RPMs (Revenue passenger miles)’ stands at 61.61 billion, an increase from the 57.43 billion recorded a year ago. Average predictions place ‘Fuel gallons consumed’ at 1,061.98 million gallons, up from 1,025 million gallons in the same quarter last year. Analysts also expect ‘Average yield per RPM’ to be around 19.54 cents, slightly lower than the previous year’s report of 19.7 cents. The analysis further indicates that ‘Cost per ASM (CASM)’ will be around 17.07 cents, a minor improvement from the 17.36 cents seen in the same quarter last year.
Stock Performance Overview
In the past month, United Airlines shares have experienced a decline of 2.3%, in contrast to the Zacks S&P 500 composite, which saw a decrease of 5.3%. Currently holding a Zacks Rank of #3 (Hold), UAL is expected to perform in line with the broader market trends in the near future.
No coins selected
