United Airlines Group (UAL.US) is one of the best performing Wall Street stock today. Company's shares rally 11% at press time, responding to a solid Q1 earnings report released yesterday in the evening.
United Airlines reported an almost 10% YoY jump in Q1 operating revenue to $12.54 billion (exp. $12.44 billion), driven by a 10% YoY increase in passenger revenue to $11.31 billion (exp. $11.19 billion). This was possible thanks to higher demand for air travel, as well as lower fuel costs. Company reported an unexpected positive operating income of $99 million (exp. -$12.3 million). However, net result remained negative at -$124 million, with adjusted EPS coming in at -$0.15. Still, net loss was smaller-than-expected.
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Create account Try a demo Download mobile app Download mobile appResults for Q1 2024 were solid, at least when compared to market expectations. Company expects a return to profitability in the second quarter of this year, forecasting an adjusted EPS of $3.75-4.25 for the current quarter. However, full-year adjusted EPS is still expected in the $9.00-11.00 range.
Q1 2024 earnings
- Operating revenue: $12.54 billion vs $12.44 billion expected (+9.7% YoY)
- Passenger revenue: $11.31 billion vs $11.19 billion expected (+10% YoY)
- Cargo revenue: $391 million vs $371 million expected (-1.8% YoY)
- Other revenue: $835 million vs $800 million (+10% YoY)
- Revenue passenger miles: 57.43 billion vs 57.39 billion expected (+9.3% YoY)
- Available seat miles: 71.67 billion vs 71.19 billion expected (+9.1% YoY)
- Load factor: 80.1% vs 80.7% expected (79.9% previously)
- Fuel consumed: 1.03 billion gallons vs 1.03 billion gallons (+7.7% YoY)
- Average price per fuel gallon: $2.88 vs $2.93 expected (-14% YoY)
- Operating income: $99 million vs -$12.3 million expected
- Operating margin: 0.8%
- Net income: -$124 million vs -$196 million expected
- Net margin: -1%
- Adjusted earnings per share: -$0.15 vs -$0.57 expected (-$0.63 previously)
Q2 2024 forecast
- Adjusted EPS: $3.75-4.25 vs $3.73 expected
Full-year 2024 forecast
- Adjusted EPS: unchanged at $9.00-11.00
- Adjusted capital expenditures: $6.5 billion, down from $9 billion in previous guidance
Taking a look at United Airlines (UAL.US) chart at D1 interval, we can see that the stock launched today's trading with a big bullish price gap and continued to gain during the session. Stock jumped above $43.50 price zone as well as 50- and 200-session moving average at the opening and is now attempting to break above the $46.00 resistance zone.
Source: xStation5
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