United Airlines (UAL) took to the skies with impressive third-quarter financial results, exceeding both revenue and earnings expectations. The airline announced a $1.5 billion share buyback program, showcasing its strong financial position and confidence in its future performance.
The airline giant reported third-quarter revenue of $14.843 billion, surpassing the consensus estimate of $14.783 billion, according to Benzinga Pro. Earnings also soared, reaching an adjusted $3.33 per share, beating analyst expectations of $3.13 per share. This robust performance demonstrates United’s strong financial footing and ability to navigate the ever-changing aviation landscape.
Scott Kirby, CEO of United Airlines, attributed the positive results to a strong summer travel season. He highlighted the reduction of unproductive capacity in the market, leading to a clear inflection point in revenue trends. “A prosperous summer 2024 is just the beginning,” he stated, emphasizing the airline’s strategic positioning for continued success.
Looking ahead, United Airlines expects fourth-quarter adjusted earnings to fall within the range of $2.50 to $3 per share. While this estimate is slightly below analyst projections of $3.17 per share, the company remains confident in its ability to deliver solid performance.
The company also reiterated its full-year 2024 adjusted capital expenditure forecast of less than $6.5 billion, indicating a continued focus on strategic investments.
Following the earnings announcement, analysts responded with bullish sentiment, raising price targets on United Airlines stock.
Morgan Stanley analyst Ravi Shanker maintained an Overweight rating on UAL, boosting the price target from $80 to $88. Bank of America Securities analyst Andrew Didora also maintained a Buy rating, increasing the price target from $70 to $84.
Susquehanna analyst Christopher Stathoulopoulos and Bernstein analyst David Vernon both maintained Positive and Outperform ratings, respectively, with price target increases to $85. TD Cowen analyst Helane Becker maintained a Buy rating and significantly raised the price target from $80 to $100.
The consensus among these analysts suggests a strong outlook for United Airlines, with the potential for continued share price appreciation. Investors looking to capitalize on the airline’s positive momentum should consider the stock’s current performance and analyst recommendations.
