United Continental Holdings Inc. (UAL - Free Report) just released its third quarter fiscal 2016 earnings results, posting earnings of $3.11 and revenue of $9.9 billion. Currently, UAL is a Zacks Rank #3 (Hold), and is up a slight 0.32% to $53.20 in after-hours trading shortly after its earnings report was released.
Beat earnings estimates. The company posted earnings of $3.11, surpassing the Zacks Consensus Estimate of $3.05 per share. This number excludes 10 cents from non-recurring items.
Beat revenue estimates. The company saw revenue figures of $9.9 billion, just edging past our consensus estimate of $9.878 billion by declining 3.8% year-over-year.
Q3 consolidated passenger revenue per available seat mile (PRASM) decreased 5.8%, and consolidated yield decreased 5.7% compared to the third quarter of 2015. The decline in PRASM continues to be driven by factors including a strong U.S. dollar, lower surcharges, reductions from energy-related corporate travel, and declining yields.
UAL generated $1.1 billion in operating cash flow and ended the quarter with $6.2 billion in unrestricted liquidity.
“We delivered another very good quarter, demonstrating the progress United continues to make at improving our customer experience, which included our best third quarter on-time performance in company history,” said Oscar Munoz, chief executive officer of United Airlines. “As we execute our strategy to build the world’s best airline, we will remain intensely focused on engaging our employees, running a great operation and improving our financial performance.”
Here’s a graph that looks at United Continental’s price, consensus, and EPS surprise:
United Continental Holdings, Inc. is the holding company for United Airlines and Continental Airlines. The Company operates its businesses through two reporting segments: Mainline and Regional Affiliates. Together with United Express, Continental Express and Continental Connection, these airlines operate throughout the Americas, Europe, Asia and Africa from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, Tokyo and Washington, D.C. United Continental is headquartered in Chicago.
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