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Stay up-to-date with all quarterly releases: See ZacksEarnings Calendar.
The Zacks Consensus Estimate for third-quarter 2024 earnings has been revised 1% upward in the past 60 days and is currently pegged at $3.11 per share. Additionally, the consensus mark implies a 14.8% decline from the year-ago actual. The Zacks Consensus Estimate for third-quarter 2024 revenues is currently pegged at $14.88 billion, which indicates a 2.8% uptick from the year-ago actual.
UAL has an impressive earnings surprise history. The company's earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, with an average beat of 26.9%.
United Airlines Holdings Inc Price and EPS Surprise
Given this backdrop, let’s examine the factors that might have influenced United Airlines’ performance in the quarter to be reported.
Low fuel costs are expected to have aided UAL’s bottom-line performance in the September quarter. Oil price has declined 14% in the July-September period. For the third quarter of 2024, we expect average fuel cost to be $3.02 per gallon.
With the summer season mostly falling in the third quarter, buoyant air travel demand in the summer holiday period is likely to have boosted the top line in the quarter under review.
UAL has been 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 1.2% increase from the year-ago level.
Labor costs are anticipated to have been high due to higher wages arising from the contract with pilots that was ratified in 2023. We expect Salaries and related costs to increase 0.5% in the third quarter of 2024 from the prior-year quarter.
What Our Model Says
Our proven model predicts 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 exactly 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 +1.25% and a Zacks Rank #3 at present.
Second-Quarter Highlights
United Airlines reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis. Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year attributed to upbeat air-travel demand.
Other Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider as well, as our model shows that these, too, have the right combination of elements to beat on earnings this season.
LUV will release results on Oct. 24. Upbeat air-travel demand is likely to have aided third-quarter performance. The Zacks Consensus Estimate for LUV’s third-quarter 2024 earnings has been revised upward by 116.7% in the past 60 days to 4 cents per share.
LUV has a decent earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the preceding four quarters (missing once and matching estimates once), with an average beat of 61.6%.
C.H. Robinson (CHRW - Free Report) has an Earnings ESP of +7.83% and a Zacks Rank #3. CHRW is scheduled to report third-quarter 2024 earnings on Oct. 30. Low operating costs are expected to have aided CHRW’s performance in the to-be-reported quarter.
The Zacks Consensus Estimate for third-quarter earnings has been revised 1.9% upward in the last 60 days. CHRW surpassed the Zacks Consensus Estimate for earnings in three of the preceding four quarters and missed once, the average beat being 7.3%.
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Is a Beat in the Offing for United Airlines in Q3 Earnings?
United Airlines (UAL - Free Report) is scheduled to report third-quarter 2024 results on Oct. 15, after market close.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The Zacks Consensus Estimate for third-quarter 2024 earnings has been revised 1% upward in the past 60 days and is currently pegged at $3.11 per share. Additionally, the consensus mark implies a 14.8% decline from the year-ago actual. The Zacks Consensus Estimate for third-quarter 2024 revenues is currently pegged at $14.88 billion, which indicates a 2.8% uptick from the year-ago actual.
UAL has an impressive earnings surprise history. The company's earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, with an average beat of 26.9%.
United Airlines Holdings Inc Price and EPS Surprise
United Airlines Holdings Inc price-eps-surprise | United Airlines Holdings Inc Quote
Given this backdrop, let’s examine the factors that might have influenced United Airlines’ performance in the quarter to be reported.
Low fuel costs are expected to have aided UAL’s bottom-line performance in the September quarter. Oil price has declined 14% in the July-September period. For the third quarter of 2024, we expect average fuel cost to be $3.02 per gallon.
With the summer season mostly falling in the third quarter, buoyant air travel demand in the summer holiday period is likely to have boosted the top line in the quarter under review.
UAL has been 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 1.2% increase from the year-ago level.
Labor costs are anticipated to have been high due to higher wages arising from the contract with pilots that was ratified in 2023. We expect Salaries and related costs to increase 0.5% in the third quarter of 2024 from the prior-year quarter.
What Our Model Says
Our proven model predicts 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 exactly 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 +1.25% and a Zacks Rank #3 at present.
Second-Quarter Highlights
United Airlines reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis. Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year attributed to upbeat air-travel demand.
Other Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider as well, as our model shows that these, too, have the right combination of elements to beat on earnings this season.
Southwest Airlines (LUV - Free Report) has an Earnings ESP of +68.05% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
LUV will release results on Oct. 24. Upbeat air-travel demand is likely to have aided third-quarter performance. The Zacks Consensus Estimate for LUV’s third-quarter 2024 earnings has been revised upward by 116.7% in the past 60 days to 4 cents per share.
LUV has a decent earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the preceding four quarters (missing once and matching estimates once), with an average beat of 61.6%.
C.H. Robinson (CHRW - Free Report) has an Earnings ESP of +7.83% and a Zacks Rank #3. CHRW is scheduled to report third-quarter 2024 earnings on Oct. 30. Low operating costs are expected to have aided CHRW’s performance in the to-be-reported quarter.
The Zacks Consensus Estimate for third-quarter earnings has been revised 1.9% upward in the last 60 days. CHRW surpassed the Zacks Consensus Estimate for earnings in three of the preceding four quarters and missed once, the average beat being 7.3%.