Latest news with #UnitedAirlinesHoldings
Business Insider
4 days ago
- Business
- Business Insider
Freedom Capital Markets Reaffirms Their Buy Rating on United Airlines Holdings (UAL)
Freedom Capital Markets analyst Sergey Glinyanov maintained a Buy rating on United Airlines Holdings yesterday and set a price target of $98.00. The company's shares closed yesterday at $92.25. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Glinyanov is ranked #6736 out of 9841 analysts. In addition to Freedom Capital Markets, United Airlines Holdings also received a Buy from Susquehanna's Christopher Stathoulopoulos in a report issued yesterday. However, on the same day, Raymond James reiterated a Hold rating on United Airlines Holdings (NASDAQ: UAL).
Yahoo
7 days ago
- Business
- Yahoo
United Airlines (NASDAQ:UAL) Misses Q2 Sales Targets
Airline company United Airlines Holdings (NASDAQ:UAL) fell short of the market's revenue expectations in Q2 CY2025 as sales only rose 1.7% year on year to $15.24 billion. Its non-GAAP profit of $3.87 per share was 1.5% above analysts' consensus estimates. Is now the time to buy United Airlines? Find out in our full research report. United Airlines (UAL) Q2 CY2025 Highlights: Revenue: $15.24 billion vs analyst estimates of $15.37 billion (1.7% year-on-year growth, 0.9% miss) Adjusted EPS: $3.87 vs analyst estimates of $3.81 (1.5% beat) Adjusted EBITDA: $2.55 billion vs analyst estimates of $2.59 billion (16.7% margin, 1.8% miss) Adjusted EPS guidance for the full year is $10 at the midpoint, missing analyst estimates by 1.4% Operating Margin: 8.7%, down from 12.9% in the same quarter last year Free Cash Flow Margin: 7.4%, down from 11.4% in the same quarter last year Revenue Passenger Miles: 70.09 billion, up 3.02 billion year on year Market Capitalization: $28.21 billion "Our second-quarter performance was more proof that the United Next strategy is working. I am extremely proud of the team for executing a strong operation and navigating through a volatile macroeconomic period, while still growing earnings and pre-tax margin for the first half of the year," said United CEO Scott Kirby. Company Overview Founded in 1926, United Airlines Holdings (NASDAQ:UAL) operates a global airline network, providing passenger and cargo air transportation services across domestic and international routes. Revenue Growth A company's long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, United Airlines grew its sales at an incredible 41.2% compounded annual growth rate. Its growth beat the average consumer discretionary company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new property or trend. United Airlines's recent performance shows its demand has slowed significantly as its annualized revenue growth of 6.8% over the last two years was well below its five-year trend. United Airlines also discloses its number of revenue passenger miles, which reached 70.09 billion in the latest quarter. Over the last two years, United Airlines's revenue passenger miles averaged 7.2% year-on-year growth. Because this number aligns with its revenue growth during the same period, we can see the company's monetization was fairly consistent. This quarter, United Airlines's revenue grew by 1.7% year on year to $15.24 billion, falling short of Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 5.6% over the next 12 months, similar to its two-year rate. This projection is underwhelming and suggests its products and services will see some demand headwinds. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating Margin United Airlines's operating margin might fluctuated slightly over the last 12 months but has remained more or less the same, averaging 8.6% over the last two years. This profitability was mediocre for a consumer discretionary business and caused by its suboptimal cost structure. In Q2, United Airlines generated an operating margin profit margin of 8.7%, down 4.2 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue. In the coming year, Wall Street expects United Airlines to maintain its trailing 12-month operating margin of 8.6%. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. United Airlines's full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it's at a critical moment in its life. In Q2, United Airlines reported EPS at $3.87, down from $4.14 in the same quarter last year. Despite falling year on year, this print beat analysts' estimates by 1.5%. Over the next 12 months, Wall Street expects United Airlines's full-year EPS of $11.37 to shrink by 4.4%. Key Takeaways from United Airlines's Q2 Results We struggled to find many positives in these results. Its revenue slightly missed and its full-year EPS guidance fell slightly short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 3.2% to $85.63 immediately following the results. So should you invest in United Airlines right now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
13-07-2025
- Business
- Yahoo
Investors Will Want United Airlines Holdings' (NASDAQ:UAL) Growth In ROCE To Persist
What trends should we look for it we want to identify stocks that can multiply in value over the long term? One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So when we looked at United Airlines Holdings (NASDAQ:UAL) and its trend of ROCE, we really liked what we saw. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on United Airlines Holdings is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.11 = US$5.7b ÷ (US$76b - US$26b) (Based on the trailing twelve months to March 2025). Thus, United Airlines Holdings has an ROCE of 11%. On its own, that's a standard return, however it's much better than the 9.0% generated by the Airlines industry. View our latest analysis for United Airlines Holdings In the above chart we have measured United Airlines Holdings' prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for United Airlines Holdings . We like the trends that we're seeing from United Airlines Holdings. The data shows that returns on capital have increased substantially over the last five years to 11%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 36%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed. To sum it up, United Airlines Holdings has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. In light of that, we think it's worth looking further into this stock because if United Airlines Holdings can keep these trends up, it could have a bright future ahead. One more thing, we've spotted 1 warning sign facing United Airlines Holdings that you might find interesting. While United Airlines Holdings isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
10-07-2025
- Business
- Yahoo
United Airlines (UAL) Shares Skyrocket, What You Need To Know
Shares of airline company United Airlines Holdings (NASDAQ:UAL) jumped 13.1% in the morning session after after rival Delta Air Lines reported strong second-quarter earnings and reinstated its full-year guidance, boosting sentiment across the airline sector. The positive momentum comes after Delta (DAL) announced earnings surpassing analyst expectations. More importantly, Delta reinstated its full-year profit forecast, projecting earnings per share between $5.25 and $6.25, signaling confidence in sustained travel demand. Delta's strong performance and optimistic outlook are being interpreted by investors as a healthy sign for the entire airline industry. The news suggests that consumer demand for travel remains robust despite economic uncertainties. This positive industry-wide signal has lifted shares of other major carriers, including United, as investors anticipate they may also report strong results. Is now the time to buy United Airlines? Access our full analysis report here, it's free. United Airlines's shares are very volatile and have had 29 moves greater than 5% over the last year. But moves this big are rare even for United Airlines and indicate this news significantly impacted the market's perception of the business. United Airlines is down 5% since the beginning of the year, and at $90.66 per share, it is trading 18% below its 52-week high of $110.52 from January 2025. Investors who bought $1,000 worth of United Airlines's shares 5 years ago would now be looking at an investment worth $2,775. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
08-07-2025
- Business
- Business Insider
Bernstein Sticks to Its Buy Rating for United Airlines Holdings (UAL)
In a report released yesterday, David Vernon from Bernstein maintained a Buy rating on United Airlines Holdings, with a price target of $104.00. The company's shares closed yesterday at $81.11. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Vernon is a 4-star analyst with an average return of 5.9% and a 57.23% success rate. Vernon covers the Industrials sector, focusing on stocks such as United Airlines Holdings, Delta Air Lines, and United Parcel. Currently, the analyst consensus on United Airlines Holdings is a Strong Buy with an average price target of $100.86, a 24.35% upside from current levels. In a report released yesterday, UBS also maintained a Buy rating on the stock with a $103.00 price target.
