We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shares of United (UAL - Free Report) were down more than 2.7% in early morning trading Wednesday, as investors are finally starting to get a clearer picture of the impact that Hurricane Harvey has had on the airliner’s business.
The dip comes in the wake of United CFO Andrew Levy’s comments at an investor conference on Wednesday. Levy warned that cancellations in Houston, which is United’s second-largest hub, had a significant impact on the company’s revenue.
“We had to walk away form a large amount of revenue during what is an important time of year for us,” Levy said. “Local demand for obvious reasons went away.”
Just moments before Levy spoke, United lowered its third-quarter passenger revenue per available seat mile (PRASM) outlook to better reflect the impact of the storm. United now expected PRASM to be down between 2% and 5% this quarter, lower than the previously announced range of up 1% to down 1%.
Overall, Levy said that about 150 basis points of the revenue guidance adjustment are due to the storm, making Hurricane Harvey the outside event with the “largest operational impact in [United’s] history.”
On top of Harvey, Levy mentioned that several other factors—including the implementation of basic economy fare, competition from budget carriers, and declines in the Pacific regions—contributed to the PRASM outlook cut.
Currently, UAL is a Zacks Rank #3 (Hold), although it stands to reason that today’s guidance adjustment could initiate earnings estimate revisions and impact the stock’s Zacks Rank. Shares of UAL have moved more than 10% lower over the past four weeks.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without.
More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really take off. See Stocks Now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why United (UAL) Stock Fell Today
Shares of United (UAL - Free Report) were down more than 2.7% in early morning trading Wednesday, as investors are finally starting to get a clearer picture of the impact that Hurricane Harvey has had on the airliner’s business.
The dip comes in the wake of United CFO Andrew Levy’s comments at an investor conference on Wednesday. Levy warned that cancellations in Houston, which is United’s second-largest hub, had a significant impact on the company’s revenue.
“We had to walk away form a large amount of revenue during what is an important time of year for us,” Levy said. “Local demand for obvious reasons went away.”
Just moments before Levy spoke, United lowered its third-quarter passenger revenue per available seat mile (PRASM) outlook to better reflect the impact of the storm. United now expected PRASM to be down between 2% and 5% this quarter, lower than the previously announced range of up 1% to down 1%.
Overall, Levy said that about 150 basis points of the revenue guidance adjustment are due to the storm, making Hurricane Harvey the outside event with the “largest operational impact in [United’s] history.”
On top of Harvey, Levy mentioned that several other factors—including the implementation of basic economy fare, competition from budget carriers, and declines in the Pacific regions—contributed to the PRASM outlook cut.
Currently, UAL is a Zacks Rank #3 (Hold), although it stands to reason that today’s guidance adjustment could initiate earnings estimate revisions and impact the stock’s Zacks Rank. Shares of UAL have moved more than 10% lower over the past four weeks.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without.
More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really take off. See Stocks Now>>