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The Zacks Consensus Estimate for second-quarter 2024 earnings has been revised 0.25% downward in the past 60 days and is currently pegged at $4 per share. Additionally, the consensus mark implies a 20.5% decline from the year-ago actuals. The Zacks Consensus Estimate for second-quarter 2024 revenues is currently pegged at $15.2 billion, which indicates a 7.2% uptick from the year-ago actuals.
UAL has an impressive earnings surprise history. The company's earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 32.34%.
Given this backdrop, let’s examine the factors which likely to have influenced United Airlines’ performance in the to-be-reported quarter.
High fuel costs are expected to have dented UAL’s bottom-line performance in the June quarter. Even though oil prices have come down from the upper limits witnessed earlier, they still remain high. For the second quarter of 2024, the average fuel cost is expected to be $2.65 per gallon.
Additionally, UAL is burdened with expenses related to non-fuel unit costs due to high labor costs and low capacity. Our estimate for non-fuel unit costs hints at a 5% increase from the year-ago levels.
Labor costs are anticipated to have been high due to higher wages arising from the contract with pilots that was ratified in 2023. Salaries and related costs are expected to increase 12.5% in the second quarter of 2024 from the prior-year quarter.
With the summer season partially falling in the second quarter, buoyant air travel demand in the summer holiday period is likely to have boosted the top line in the quarter under review. Passenger revenues are expected to jump 8.2% from the prior year.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for United Airlines this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
UAL has an Earnings ESP of -1.30% and a Zacks Rank #3.
Q1 Highlights
United Airlines reported first-quarter 2024 loss per share (excluding 23 cents from non-recurring items) of 15 cents, which was narrower than the Zacks Consensus Estimate of a loss of 53 cents. In the year-ago reported quarter, UAL had a loss of 63 cents per share. Operating revenues of $12.53 billion beat the Zacks Consensus Estimate of $12.43 billion.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat second-quarter 2024 earnings.
CPA will release results on Aug 7. Upbeat air-travel demand is likely to have aided the second-quarter performance.
The Zacks Consensus Estimate for CPA’s second-quarter 2024 earnings has been revised downward by 16.3% in the past 60 days to $2.98 per share. CPA has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 20.19%.
Expeditors International of Washington (EXPD - Free Report) has an Earnings ESP of +3.03% and a Zacks Rank #3. EXPD is scheduled to report second-quarter 2024 earnings on Aug 6. Lackluster volumes (with respect to air-freight tonnage and ocean containers) due to weakening demand and falling rates are likely to have hurt EXPD’s performance in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter earnings has been revised 1.68% upward in the last 60 days. EXPD surpassed the Zacks Consensus Estimate for earnings in only one of the preceding four quarters and missed thrice, the average miss being 3.44%.
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What's in Store for United Airlines (UAL) in Q2 Earnings?
United Airlines (UAL - Free Report) is scheduled to report second-quarter 2024 results on Jul 17, after market close.
The Zacks Consensus Estimate for second-quarter 2024 earnings has been revised 0.25% downward in the past 60 days and is currently pegged at $4 per share. Additionally, the consensus mark implies a 20.5% decline from the year-ago actuals. The Zacks Consensus Estimate for second-quarter 2024 revenues is currently pegged at $15.2 billion, which indicates a 7.2% uptick from the year-ago actuals.
UAL has an impressive earnings surprise history. The company's earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 32.34%.
Given this backdrop, let’s examine the factors which likely to have influenced United Airlines’ performance in the to-be-reported quarter.
High fuel costs are expected to have dented UAL’s bottom-line performance in the June quarter. Even though oil prices have come down from the upper limits witnessed earlier, they still remain high. For the second quarter of 2024, the average fuel cost is expected to be $2.65 per gallon.
Additionally, UAL is burdened with expenses related to non-fuel unit costs due to high labor costs and low capacity. Our estimate for non-fuel unit costs hints at a 5% increase from the year-ago levels.
Labor costs are anticipated to have been high due to higher wages arising from the contract with pilots that was ratified in 2023. Salaries and related costs are expected to increase 12.5% in the second quarter of 2024 from the prior-year quarter.
With the summer season partially falling in the second quarter, buoyant air travel demand in the summer holiday period is likely to have boosted the top line in the quarter under review. Passenger revenues are expected to jump 8.2% from the prior year.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for United Airlines this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
UAL has an Earnings ESP of -1.30% and a Zacks Rank #3.
Q1 Highlights
United Airlines reported first-quarter 2024 loss per share (excluding 23 cents from non-recurring items) of 15 cents, which was narrower than the Zacks Consensus Estimate of a loss of 53 cents. In the year-ago reported quarter, UAL had a loss of 63 cents per share. Operating revenues of $12.53 billion beat the Zacks Consensus Estimate of $12.43 billion.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat second-quarter 2024 earnings.
Copa Holdings (CPA - Free Report) has an Earnings ESP of +3.01% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
CPA will release results on Aug 7. Upbeat air-travel demand is likely to have aided the second-quarter performance.
The Zacks Consensus Estimate for CPA’s second-quarter 2024 earnings has been revised downward by 16.3% in the past 60 days to $2.98 per share. CPA has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 20.19%.
Expeditors International of Washington (EXPD - Free Report) has an Earnings ESP of +3.03% and a Zacks Rank #3. EXPD is scheduled to report second-quarter 2024 earnings on Aug 6. Lackluster volumes (with respect to air-freight tonnage and ocean containers) due to weakening demand and falling rates are likely to have hurt EXPD’s performance in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter earnings has been revised 1.68% upward in the last 60 days. EXPD surpassed the Zacks Consensus Estimate for earnings in only one of the preceding four quarters and missed thrice, the average miss being 3.44%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar