Shares of United Continental Holdings (UAL - Free Report) gained nearly 4% in early morning trading Tuesday after the airliner announced new efforts to generate revenues and save costs. In an investor call, United detailed a plan that is expected to bring the company an extra $3 billion by 2018.
One of United’s focuses is the efficiency of its current operations. The company said that it will implement new policies that should reduce the cost of irregular operations by minimizing delays and improving schedule quality, among other things.
United also highlighted the fact that its position in the domestic market has “eroded” over the past five years. In that time frame, its domestic consolidated capacity has slipped by 6% and its seat share in major hubs has slipped by 5%.
The airliner is hoping to remedy these issues by a number of in-flight changes, including the addition of new premium seats and elevated food and beverage offerings, as well as out of flight improvements to its United Club experience and mobile app.
Along with this strategic plan, United also updated its second-quarter expectations. The company now expects its quarterly passenger unit revenue to fall between 6.5% and 7.5% year-over-year compared to its previously announced expectation of a 6.5% to 8.5% drop.
United currently holds a Zacks Rank #5 (Strong Sell) based on the unfavorable earnings estimate revision activity it has seen over the past 60 days. However, if today’s updates change the opinions of the analysts, United could be back on a road to recovery.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Shares of United Continental Holdings (UAL - Free Report) gained nearly 4% in early morning trading Tuesday after the airliner announced new efforts to generate revenues and save costs. In an investor call, United detailed a plan that is expected to bring the company an extra $3 billion by 2018.
One of United’s focuses is the efficiency of its current operations. The company said that it will implement new policies that should reduce the cost of irregular operations by minimizing delays and improving schedule quality, among other things.
United also highlighted the fact that its position in the domestic market has “eroded” over the past five years. In that time frame, its domestic consolidated capacity has slipped by 6% and its seat share in major hubs has slipped by 5%.
The airliner is hoping to remedy these issues by a number of in-flight changes, including the addition of new premium seats and elevated food and beverage offerings, as well as out of flight improvements to its United Club experience and mobile app.
Along with this strategic plan, United also updated its second-quarter expectations. The company now expects its quarterly passenger unit revenue to fall between 6.5% and 7.5% year-over-year compared to its previously announced expectation of a 6.5% to 8.5% drop.
United currently holds a Zacks Rank #5 (Strong Sell) based on the unfavorable earnings estimate revision activity it has seen over the past 60 days. However, if today’s updates change the opinions of the analysts, United could be back on a road to recovery.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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