United Continental (UAL, $88.03) Q1 earnings surpasses analysts' estimates, and reaffirms full-year guidance
United Continental Holdings’ earnings for the first quarter beat analysts’ estimates. The company reaffirmed its outlook for the full-year.
The airline company’s unadjusted earnings for the first quarter came in at $1.15 a share, compared to 95 cents a share expected by analysts polled by FactSet.
The quarterly profit on an adjusted basis was $292 million (or $1.09 a share), doubling from the year-ago quarter’s $145 million (or 51 cents a share). Revenue of $9.59 billion, however, fell slightly short of analysts’ expectations of $9.61 billion. But it was still higher than the prior year period’s $9.03 billion.
Shaken by recent crashes of Boeing 737 MAX 8 aircrafts flown by Lion Air and Ethiopian Airlines respectively, United said earlier this week that it was canceling MAX flights through early July. United has 14 737 MAX 9 jets in its fleet, not the MAX 8 variant.
United reiterated its full-year earnings guidance of the range $10 to $12 per share for 2019, which is higher than current FactSet consensus estimates of $11.09 a share. The carrier projects earnings of $11 to $13 a share on an adjusted basis for 2020, compared to FactSet consensus estimates of $12.09 a share.
Aroon Indicator for UAL shows an upward move is likely
UAL's Aroon Indicator triggered a bullish signal on December 16, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 206 similar instances where the Aroon Indicator showed a similar pattern. In of the 206 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on December 23, 2024. You may want to consider a long position or call options on UAL as a result. In of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where UAL advanced for three days, in of 302 cases, the price rose further within the following month. The odds of a continued upward trend are .
UAL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The 10-day RSI Indicator for UAL moved out of overbought territory on December 09, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 31 similar instances where the indicator moved out of overbought territory. In of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Moving Average Convergence Divergence Histogram (MACD) for UAL turned negative on November 22, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where UAL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. UAL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.909) is normal, around the industry mean (3.830). P/E Ratio (12.057) is within average values for comparable stocks, (41.609). Projected Growth (PEG Ratio) (0.823) is also within normal values, averaging (0.866). UAL has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.038). P/S Ratio (0.602) is also within normal values, averaging (1.420).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. UAL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock better than average.
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General Information
a holding company with interest in transporting people and cargo through mainline operations, which utilize full-sized jet aircraft
Industry Airlines