United Intercontinental Holdings Inc (NASDAQ: UAL)
United stock was up $3.12, or 3.74% to change hands at $86.64 at 11:30 a.m. in New York on Wednesday after the company reported upbeat third-quarter figures late Tuesday. The stock, which was trading 5.7% higher in premarket trading, has rallied more than 28% year to date.
The airline also improved its full-year earnings per share forecast and said it expects to compensate for almost all of the surging jet-fuel costs that have struck airline this year.
UAL Earnings & Outlook
The carrier posted earnings of $836 million, or $3.06 per share during the quarter, up from $645 million, or $2.15 per share, in the third quarter of last year.
Earnings, adjusted for one-time items, totaled $837 million, or $3.06 per share, for the quarter, up from $677 million, or $2.25 per share, in the prior-year period.
Revenue came in at $11 billion, an increase of 11 percent from $9.9 billion in the same period a year ago. Analysts surveyed by Zacks had called for adjusted earnings of $3.07 per share on revenue of $10.96 billion.
For the full year, the company expects profits of between $8 to $8.25 per share, from its previous guidance of $7.25 to $8.25 per share. Analysts expect United to post earnings of $8.16 per share and revenue of $40.91 billion for the year.
The company did not issue earnings forecast for its fiscal fourth quarter. However, it expects fuel consumption to come in at between 1.015 billion and 1.035 billion gallons during the quarter.
Industry analysts believe that airlines are likely to raise luggage fees and passenger fares in the coming months if uncertainties in the oil market continue.
United Continental Holdings CEO Comments
“Our stand-out third-quarter performance, which produced double-digit revenue growth as we more than offset the steep increase in fuel costs, is proof that United is building momentum,” said Oscar Munoz, chief executive officer of United Airlines. “Our growth plan has been essential to our success, and we’re more confident than ever we’ll achieve the ambitious adjusted earnings per share1 target of $11 to $13 we laid out for 2020.”
United Continental Holdings, Inc. Profile
United Continental Holdings, Inc., together with its subsidiaries, provides air transportation services in North America, the Asia-Pacific, Europe, the Middle East, Africa, and Latin America. It transports people and cargo through its mainline and regional operations.
It also sells fuel; and offers catering, ground handling, and maintenance services for third parties. The company was formerly known as UAL Corporation and changed its name to United Continental Holdings, Inc. in October 2010. United Continental Holdings, Inc. was founded in 1934 and is based in Chicago, Illinois. – Yahoo Finance
