United Continental Holdings UAL, the holding company of United Airlines and Continental Airlines, operates in two segments: Mainline and Regional Affiliates. Further, the company manages its business as an integrated network with assets deployed across its Mainline and regional carrier networks.
United Continental has an encouraging track record having delivered positive earnings surprises in each of the last four quarters, with an average beat of 3.88%.
Zacks Rank : Currently, United Continental has a Zacks Rank #2 (Buy), but that could definitely change following United Continental‘s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings : United Continental‘s third quarter 2015 earnings (on an adjusted basis) per share of $4.53 per share beat the Zacks Consensus Estimate of $4.49.
Revenue : Operating revenues of $10.31 billion above the Zacks Consensus Estimate of $10.27 billion. Revenues also declined 2.4% on a year over year basis. A strong dollar hurt quarterly revenues.
Key Stats : PRASM (on a consolidated basis: a measure of unit revenue) in the third quarter declined 5.8% and yield fell 5.6 % on a year over year basis. The company expects PRASM in the fourth quarter to decline in the range of 4% to 6%. Fuel price (including all cash-settled hedges) is expected in the band of $1.85 per gallon to $1.90 per gallon in the final quarter of 2015.
Stock Price: The PRASM forecast did not please the investors and the stock was down marginally in pre-market trading at the time of writing.
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