United Airlines Stock Soars Pre-Market After Upbeat Q4 Earnings, Projections: Retail Sentiment Hits Year-High
Synopsis
Total operating revenue in the fourth quarter (Q4) rose 7.8% year-over-year (YoY) to $14.7 billion compared to a Wall Street estimate of $14.37 billion. Earnings per share (EPS) came in at $3.26 versus an estimated $3.
Shares of United Airlines Holdings Inc (UAL) rose over 3% in Wednesday’s pre-market session after the company’s fourth-quarter earnings topped Wall Street expectations, and projections for the current quarter also beat estimates.
Total operating revenue in the fourth quarter (Q4) rose 7.8% year-over-year (YoY) to $14.7 billion compared to a Wall Street estimate of $14.37 billion. Earnings per share (EPS) came in at $3.26 versus an estimated $3. Net income surged 64% YoY to over a billion dollars during the quarter.
During the quarter, total revenue per available seat mile (TRASM) rose 1.6% YoY to $0.1877.
CEO Scott Kirby noted that 2024 was a strong year across the board for United. “…we enter 2025 with demand trends continuing to accelerate, which puts us on the path to double-digit pre-tax margins,” he said.
For the first quarter of 2025, the airline expects to post earnings between $0.75 and $1.25 per share versus an estimate of $0.54. For 2025, the company expects adjusted earnings at $11.50 to $13.50, versus expectations of $12.82. At the same time, adjusted total capital expenditures is expected below $7 billion.
United Airlines said it sees strong demand trends in the first quarter, with domestic RASM expected to turn solidly positive year-over-year and continued improvement in international RASM.
On Stocktwits, retail sentiment flipped into the ‘extremely bullish’ territory (93/100) from ‘neutral’ a day ago to hit a year-high level. The move was accompanied by ‘extremely high’ retail chatter.
Retail chatter on Stocktwits reflected an optimistic take on the stock.
United shares have gained over 15% year-to-date, while the stock has risen over 187% over the past year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.