United Airlines Q1 Earnings Preview: Analyst Estimates, Safety Concerns, Underperformance To Delta — Key Items To Watch
Portfolio Pulse from Chris Katje
United Airlines Holdings Inc (NASDAQ:UAL) is set to report Q1 financial results, with analysts expecting a revenue of $12.45 billion and a loss of 56 cents per share. The report follows Delta Air Lines' (NYSE:DAL) earnings beat and comes amid Boeing (NYSE:BA) safety concerns affecting the airline sector. United postponed its investor day due to these concerns. The U.S. Global JETS ETF (NYSE:JETS), with United as its second-largest holding, has seen a 6.7% increase over the past year. Analysts have adjusted United's price targets, with Susquehanna lowering it from $60 to $55 and UBS initiating a Neutral rating with a $47 target.
April 15, 2024 | 10:02 pm
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NEGATIVE IMPACT
Boeing's safety concerns have impacted the airline sector, including United Airlines, which postponed its investor day due to these issues.
Boeing's safety concerns have had a significant impact on the airline sector, affecting United Airlines directly by leading to the postponement of its investor day. This situation could negatively influence investor sentiment towards UAL in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 80
POSITIVE IMPACT
Delta Air Lines recently reported earnings that surpassed Street estimates, potentially setting a positive precedent for United Airlines' upcoming earnings report.
Delta Air Lines' recent earnings beat and the subsequent analyst price target increases could indirectly benefit United Airlines by setting a positive tone for the airline sector, potentially boosting investor confidence in UAL ahead of its earnings report.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 70
POSITIVE IMPACT
The U.S. Global JETS ETF, with United Airlines as its second-largest holding, has seen a 6.7% increase over the past year, potentially influenced by sector performance and United's upcoming earnings.
As United Airlines is a significant component of the JETS ETF, its upcoming earnings report could have a direct impact on the ETF's performance, especially given the sector's recent dynamics and United's potential to match or exceed expectations.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
United Airlines is anticipated to report a revenue increase and a smaller loss per share compared to last year, indicating potential positive momentum despite Boeing-related setbacks.
Given United Airlines' history of beating Street estimates and the positive momentum in the airline sector, the expected increase in revenue and smaller loss per share could signal short-term positive impact on UAL's stock price, despite broader sector challenges.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100