United Continental Stock Jumps on Q3 Earnings Beat

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United Continental stock (NASDAQ:UAL) was surging late in the day as the company reported its latest quarterly revenue results on Tuesday, which were stronger than what analysts were calling for.

United Continental StockThe parent company of United Airlines said that its net income for its third quarter of fiscal 2018 was 30% greater than it was during the year-ago quarter, reaching $836 million. This amounted to about $3.06 per share, which as a 36% increase year-over-year on a per-share basis, but the figure was below the $3.09 per share that analysts were calling for.

United Continental added that its revenue for the period came in at $11 billion, which was an improvement over its sales from the year-ago quarter by 11.2%. The figure also came in ahead of the $10.96 billion that analysts were calling for.

The company also said that its unit revenue for the period tallied up year-over-year, gaining by about 6.1%, which was better than the company’s estimate on this regard of a gain of 4% to 6%. For its fiscal 2018, United Continental now sees its earnings as being in the range of $8 to $8.75 per share, which is ahead of the $8.16 per share that analysts expect.

The company is also projecting a unit revenue gain of 3% to 5% for the period, as well as a 5% to 6% expansion in capacity for its fourth quarter, as well as an adjusted pretax margin of 5% to 7%. “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,” CEO Oscar Munoz said in a statement.

UAL stock was up about 2.7% during regular trading hours on Tuesday in anticipation of the company’s quarterly earnings results. The strong profit helped the company’s shares surge about 4.3% after the bell on the day.


Article printed from InvestorPlace Media, https://investorplace.com/2018/10/united-continental-stock-ual/.

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