Earnings Preview: United Airlines Holdings

United Airlines Holdings (NASDAQ:UAL) is gearing up to announce its quarterly earnings on Tuesday, 2024-10-15. Here's a quick overview of what investors should know before the release.

Analysts are estimating that United Airlines Holdings will report an earnings per share (EPS) of $3.07.

Anticipation surrounds United Airlines Holdings's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

The company's EPS beat by $0.19 in the last quarter, leading to a 1.17% drop in the share price on the following day.

Here's a look at United Airlines Holdings's past performance and the resulting price change:

Quarter	Q2 2024	Q1 2024	Q4 2023	Q3 2023
EPS Estimate	3.95	-0.56	1.7	3.35
EPS Actual	4.14	-0.15	2	3.65
Price Change %	-1.0%	17.0%	5.0%	-10.0%

Performance of United Airlines Holdings Shares

Shares of United Airlines Holdings were trading at $61.8 as of October 11. Over the last 52-week period, shares are up 57.48%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Perspectives on United Airlines Holdings

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on United Airlines Holdings.

A total of 3 analyst ratings have been received for United Airlines Holdings, with the consensus rating being Buy. The average one-year price target stands at $75.0, suggesting a potential 21.36% upside.

Analyzing Analyst Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Southwest Airlines, Delta Air Lines and LATAM Airlines Group, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• As per analysts' assessments, Southwest Airlines is favoring an Neutral trajectory, with an average 1-year price target of $27.77, suggesting a potential 55.06% downside.
• For Delta Air Lines, analysts project an Outperform trajectory, with an average 1-year price target of $63.29, indicating a potential 2.41% upside.
• For LATAM Airlines Group, analysts project an Outperform trajectory, with an average 1-year price target of $36.67, indicating a potential 40.66% downside.

Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Southwest Airlines, Delta Air Lines and LATAM Airlines Group, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
United Airlines Holdings	Buy	5.70%	$4.80B	13.42%
Southwest Airlines	Neutral	4.50%	$1.49B	3.60%
Delta Air Lines	Outperform	1.22%	$3.83B	9.77%
LATAM Airlines Group	Outperform	13.31%	$636.83M	25.59%

Key Takeaway:

United Airlines Holdings is positioned at the top for Revenue Growth among its peers. It ranks in the middle for Gross Profit. In terms of Return on Equity, it is positioned at the bottom compared to its peers.

Unveiling the Story Behind United Airlines Holdings

United Airlines is a major us network carrier with hubs in San Francisco, Chicago, Houston, Denver, Los Angeles, New York/Newark, and Washington, D.C. United operates a hub-and-spoke system that is more focused on international and long-haul travel than its large U.S. peers.

United Airlines Holdings: Delving into Financials

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Positive Revenue Trend: Examining United Airlines Holdings's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.7% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Net Margin: United Airlines Holdings's net margin excels beyond industry benchmarks, reaching 8.83%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): United Airlines Holdings's ROE excels beyond industry benchmarks, reaching 13.42%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.82%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 3.0, United Airlines Holdings adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for United Airlines Holdings visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.