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The Zacks Consensus Estimate for UAL’s second-quarter 2022 earnings has been revised upward by 42.3% in the past 60 days. The company also has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters, the average beat being 17.9%.
United Airlines Holdings Inc Price and EPS Surprise
Let’s see how things are shaping up for United Airlines this earnings season.
Q2 Expectations
The Zacks Consensus Estimate for United Airlines’ second-quarter 2022 revenues is pegged at $11.99 billion, indicating more than 100% growth year over year. The top line is likely to have been aided by solid recovery of air-travel demand (post the pandemic-led slump) and improvement in passenger revenues (which accounts for more than 80% of total revenues).
These tailwinds have enabled UAL’s management to raise second-quarter revenue guidance. The company now projects total revenue per available seat miles (TRASM: a measure of unit revenue) to increase in the 23-25% band from the second-quarter 2019 actuals. Per the previous TRASM forecast given during first-quarter 2022 results, the metric was expected to increase roughly 17% from the second-quarter 2019 actuals.
On the flip side, increase in oil price (up a massive 48% in first-half 2022) continues to bother UAL’s bottom line. Oil price is moving northward primarily because of the Russia-Ukraine war. The carrier reported average aircraft fuel price per gallon of $2.88 in the first quarter, up 40.5% year over year. For the second quarter, the company estimates average aircraft fuel price per gallon to be $4.02, higher than the previous estimate of $3.43.
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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
United Airlines has an Earnings ESP of +4.14% and a Zacks Rank #3.
Highlights of Q1
United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss incurred by the company as coronavirus concerns continue to weigh on air-travel demand. Results were hurt by Omicron-induced softness in travel demand in the first half of the reported quarter. However, the bottom line improved 43.5% year over year.
Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million. The top line surged more than 100% year over year as air-travel demand continued to rebound from the pandemic-led slump. However, with the prevalent pandemic, the same declined 21.1% from the first quarter of 2019.
Other 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 on their second-quarter 2022 earnings:
Kirby has an expected earnings growth rate of 282.14% for the current year. KEX delivered a trailing four-quarter earnings surprise of 7.7%, on average.
KEX has a long-term earnings growth rate of 12%.
Norfolk Southern Corporation (NSC - Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #3. NSC will release results on Jul 27. Improved performance of the intermodal and merchandise segments is likely to aid results.
Norfolk has an expected earnings growth rate of 14.7% for the current year. NSC delivered a trailing four-quarter earnings surprise of 5.2%, on average.
Norfolk has a long-term earnings growth rate of 10.5%.
Southwest Airlines Co. (LUV - Free Report) has an Earnings ESP of +3.21% and a Zacks Rank #3. Improved air-travel demand is likely to aid LUV’s results. LUV will release results on Jul 28.
Southwest has an expected earnings growth rate of 226.05% for the current year. LUV delivered a trailing four-quarter earnings surprise of 33.5%, on average.
Southwest has a long-term earnings growth rate of 6%.
Image: Bigstock
Is a Beat Ahead for United Airlines (UAL) in Q2 Earnings?
United Airlines (UAL - Free Report) is scheduled to report second-quarter 2022 results on Jul 20, after market close.
The Zacks Consensus Estimate for UAL’s second-quarter 2022 earnings has been revised upward by 42.3% in the past 60 days. The company also has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters, the average beat being 17.9%.
United Airlines Holdings Inc Price and EPS Surprise
United Airlines Holdings Inc price-eps-surprise | United Airlines Holdings Inc Quote
Let’s see how things are shaping up for United Airlines this earnings season.
Q2 Expectations
The Zacks Consensus Estimate for United Airlines’ second-quarter 2022 revenues is pegged at $11.99 billion, indicating more than 100% growth year over year. The top line is likely to have been aided by solid recovery of air-travel demand (post the pandemic-led slump) and improvement in passenger revenues (which accounts for more than 80% of total revenues).
These tailwinds have enabled UAL’s management to raise second-quarter revenue guidance. The company now projects total revenue per available seat miles (TRASM: a measure of unit revenue) to increase in the 23-25% band from the second-quarter 2019 actuals. Per the previous TRASM forecast given during first-quarter 2022 results, the metric was expected to increase roughly 17% from the second-quarter 2019 actuals.
On the flip side, increase in oil price (up a massive 48% in first-half 2022) continues to bother UAL’s bottom line. Oil price is moving northward primarily because of the Russia-Ukraine war. The carrier reported average aircraft fuel price per gallon of $2.88 in the first quarter, up 40.5% year over year. For the second quarter, the company estimates average aircraft fuel price per gallon to be $4.02, higher than the previous estimate of $3.43.
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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
United Airlines has an Earnings ESP of +4.14% and a Zacks Rank #3.
Highlights of Q1
United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss incurred by the company as coronavirus concerns continue to weigh on air-travel demand. Results were hurt by Omicron-induced softness in travel demand in the first half of the reported quarter. However, the bottom line improved 43.5% year over year.
Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million. The top line surged more than 100% year over year as air-travel demand continued to rebound from the pandemic-led slump. However, with the prevalent pandemic, the same declined 21.1% from the first quarter of 2019.
Other 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 on their second-quarter 2022 earnings:
Kirby (KEX - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank #2. KEX will release results on Jul 28. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kirby has an expected earnings growth rate of 282.14% for the current year. KEX delivered a trailing four-quarter earnings surprise of 7.7%, on average.
KEX has a long-term earnings growth rate of 12%.
Norfolk Southern Corporation (NSC - Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #3. NSC will release results on Jul 27. Improved performance of the intermodal and merchandise segments is likely to aid results.
Norfolk has an expected earnings growth rate of 14.7% for the current year. NSC delivered a trailing four-quarter earnings surprise of 5.2%, on average.
Norfolk has a long-term earnings growth rate of 10.5%.
Southwest Airlines Co. (LUV - Free Report) has an Earnings ESP of +3.21% and a Zacks Rank #3. Improved air-travel demand is likely to aid LUV’s results. LUV will release results on Jul 28.
Southwest has an expected earnings growth rate of 226.05% for the current year. LUV delivered a trailing four-quarter earnings surprise of 33.5%, on average.
Southwest has a long-term earnings growth rate of 6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.