On Thursday, United Continental (NASDAQ:UAL) maintained its Buy rating and $80.00 price target from TD Cowen. The airline is anticipated to announce its third-quarter results in the middle of the week of October 13, with the release scheduled after the market closes and the conference call to follow the next morning. The firm raised its estimates in alignment with the recent outlooks provided by industry peers, suggesting a robust business trajectory for United.
The airline industry has been closely monitoring performance indicators, and TD Cowen's projection signals a positive outlook for United Continental. The analyst expects that the company will not only meet but potentially exceed third-quarter expectations. This bullish stance is further supported by the anticipation of management guiding fourth-quarter adjusted earnings per share (EPS) above the consensus estimates among analysts.
United Continental's financial performance is a key interest to investors, especially considering the recent updates. The firm's analysis points to a tightening of the full-year EPS range to between $9.50 and $10.50. This adjustment reflects a confident view of the company's earnings capability through the end of the fiscal year.
The airline sector has been under scrutiny as companies navigate post-pandemic recovery and evolving travel demands. United Continental's upcoming earnings report is particularly significant as it provides insights into the company's performance and strategic direction amidst these market conditions.
In other recent news, United Airlines has seen a series of significant developments. Notably, Citi maintained a Buy rating on United Airlines shares, adjusting its earnings per share (EPS) estimate for the third quarter of 2024 from $2.98 to $3.09. The full-year EPS estimates for 2024, 2025, and 2026 have also been revised. Concurrently, United Airlines announced the retirement of Linda Jojo, the Executive Vice President and Chief Customer Officer, effective January 2, 2025.
In partnership news, United Airlines revealed an agreement with SpaceX to offer free Starlink Wi-Fi on its flights, aiming to enhance passenger experience. This development follows a recent trend in the airline industry, with American Airlines (NASDAQ:AAL) slightly increasing its system capacity for February 2025, deviating from the broader trend of capacity reduction.
InvestingPro Insights
United Continental's (NASDAQ:UAL) financial metrics and market performance align well with TD Cowen's bullish outlook. According to InvestingPro data, UAL's P/E ratio stands at a modest 6.21, indicating that the stock may be undervalued relative to its earnings. This is further supported by an InvestingPro Tip highlighting that UAL is trading at a low earnings multiple.
The company's revenue growth of 9.34% over the last twelve months demonstrates its ability to capitalize on the recovering travel demand. Additionally, UAL's operating income margin of 9.01% suggests efficient cost management, which is crucial in the airline industry's competitive landscape.
An InvestingPro Tip notes that 4 analysts have revised their earnings upwards for the upcoming period, aligning with TD Cowen's positive expectations for the third-quarter results. This, coupled with the company's strong return of 27.06% over the last month, indicates growing investor confidence in UAL's performance.
For investors seeking more comprehensive insights, InvestingPro offers 11 additional tips for United Continental, providing a deeper understanding of the company's financial health and market position.
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