United Airlines (NASDAQ:UAL) Issues Earnings Results, Beats Expectations By $0.30 EPS

United Airlines (NASDAQ:UAL) posted its quarterly earnings data on Tuesday. The transportation company reported $3.26 EPS for the quarter, topping analysts’ consensus estimates of $2.96 by $0.30, RTT News reports. The firm had revenue of $14.70 billion for the quarter, compared to analyst estimates of $14.40 billion. United Airlines had a return on equity of 30.72% and a net margin of 4.94%. The company’s revenue was up 7.8% on a year-over-year basis. During the same quarter last year, the company earned $2.00 EPS. United Airlines updated its Q1 guidance to $0.75-1.25 EPS and its FY25 guidance to $11.50-13.50 EPS.

United Airlines Stock Up 2.9 %

Shares of UAL traded up $3.14 on Tuesday, reaching $110.52. The company’s stock had a trading volume of 12,276,837 shares, compared to its average volume of 6,451,333. The stock has a market capitalization of $36.35 billion, a PE ratio of 13.33, a PEG ratio of 0.78 and a beta of 1.44. The company has a current ratio of 0.79, a quick ratio of 0.72 and a debt-to-equity ratio of 1.95. United Airlines has a twelve month low of $37.02 and a twelve month high of $110.92. The firm has a fifty day moving average of $98.09 and a 200-day moving average of $69.80.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on UAL shares. Raymond James increased their price objective on shares of United Airlines from $90.00 to $120.00 and gave the stock an “outperform” rating in a research note on Monday, December 30th. Citigroup boosted their target price on United Airlines from $98.00 to $122.00 and gave the stock a “buy” rating in a research note on Tuesday, November 26th. Dbs Bank upgraded shares of United Airlines from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, November 26th. Susquehanna increased their price objective on shares of United Airlines from $85.00 to $120.00 and gave the company a “positive” rating in a research note on Tuesday, January 7th. Finally, JPMorgan Chase & Co. increased their price target on United Airlines from $108.00 to $133.00 and gave the company an “overweight” rating in a research note on Thursday, January 9th. One analyst has rated the stock with a hold rating, sixteen have assigned a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Buy” and a consensus target price of $106.45.

Insider Activity

In related news, EVP Kate Gebo sold 17,500 shares of the stock in a transaction that occurred on Friday, November 1st. The stock was sold at an average price of $80.44, for a total transaction of $1,407,700.00. Following the completion of the sale, the executive vice president now directly owns 40,012 shares of the company’s stock, valued at approximately $3,218,565.28. This trade represents a 30.43 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Linda P. Jojo sold 60,000 shares of the company’s stock in a transaction on Friday, November 22nd. The shares were sold at an average price of $95.12, for a total value of $5,707,200.00. Following the completion of the transaction, the executive vice president now owns 63,599 shares of the company’s stock, valued at $6,049,536.88. This trade represents a 48.54 % decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 0.63% of the company’s stock.

United Airlines announced that its board has approved a stock repurchase program on Tuesday, October 15th that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the transportation company to repurchase up to 7.1% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.

About United Airlines

United Airlines Holdings, Inc, through its subsidiaries, provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. The company transports people and cargo through its mainline and regional fleets. It also offers catering, ground handling, flight academy, and maintenance services for third parties.