Will United Continental's (UAL) Q1 Earnings Cheer Investors?
Zacks Investment Research | Apr 10, 2019 10:00PM ET
United Continental Holdings (NASDAQ:UAL) is scheduled to report first-quarter 2019 results on Apr 16, after market close.
In the last reported quarter, the company delivered a positive earnings surprise of 29.6%. Revenues also surpassed expectations. Both the metrics improved on a year-over-year basis.
This apart, the company has an impressive earnings history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters, the average beat being 9%.
With the Zacks Consensus Estimate for first-quarter earnings having revised upward by almost 71% over the past 90 days, things seem to be rosy for the company.
Let’s delve deep to unearth the factors likely to influence this Chicago-based carrier’s results in the soon-to-be-reported quarter.
We expect the company’s passenger revenues to improve on the strong demand for air travel. As a result, total revenues should benefit as passenger revenues account for bulk of the top line. The company is also expected to perform well on the unit revenue front. It anticipates passenger unit revenues to be nearly at the mid-point of the 0-3% range in first-quarter 2019.
Additionally, with oil prices moderating, fuel costs might be less of a hindrance in the quarter to be reported. United Continental expects fuel price per gallon in the $2-$2.05 range in the same period, which compares favorably with $2.30 reported in the fourth quarter of 2018.
However, high labor costs are likely to bump up operating expenses, which in turn might limit bottom-line growth.
United Continental Holdings, Inc. Price and EPS Surprise
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