United Airlines' 1Q24 Unit Revenue Outlook Better Than Delta Air: Analyst's Eyes On Building Blocks For 2024 EPS
Portfolio Pulse from Nabaparna Bhattacharya
BofA Securities analyst Andrew G. Didora maintained a Buy rating on United Airlines Holdings, Inc. (UAL) with a target price of $56. United Airlines outperformed in Q4 earnings, reporting $2.00 EPS against an estimate of $1.70, and revenue of $13.60 billion against $13.54 billion expected. UAL's Q1 2024 unit revenue outlook is better than expected and surpasses Delta Air Lines, Inc.'s (DAL) forecast. The company's performance is strong despite the grounding of Boeing Company's (BA) 737 MAX 9. An accounting change affected unit revenues/costs in Q4 2023 and will continue to do so until Q3 2024. UAL's stock price rose by 6.19% to $40.83.
January 23, 2024 | 7:14 pm
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POSITIVE IMPACT
United Airlines reported strong Q4 earnings and a positive Q1 2024 unit revenue outlook, surpassing expectations and competitor Delta Air Lines. The stock price increased by 6.19%.
The positive earnings report and favorable Q1 2024 unit revenue outlook suggest strong performance and investor confidence, likely leading to a continued short-term positive impact on UAL's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Boeing's 737 MAX 9 grounding is mentioned as a factor in United Airlines' capacity growth, which could influence investor perception of Boeing's impact on airlines.
While the grounding of Boeing's 737 MAX 9 is a factor for United Airlines, the direct short-term impact on Boeing's stock is uncertain and likely neutral as the situation is already known to the market.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Delta Air Lines' Q1 2024 unit revenue outlook is less favorable compared to United Airlines, which may impact investor sentiment.
United Airlines' better-than-expected unit revenue outlook for Q1 2024 compared to Delta Air Lines could lead to negative sentiment towards DAL in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70