United Airlines (UAL) is scheduled to announce its third-quarter results after the market closes on January 21. The company will hold an earnings call on January 22. Shares of the air carrier have rallied more than 183% over the past year, fueled by robust air travel demand, strong execution, and upbeat operational results. Wall Street expects UAL’s Q4 adjusted EPS (earnings per share) to rise by 51.5% to $3.03.
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Revenue is projected to rise 5.6% year-over-year to $14.4 billion. It is interesting to note that United Airlines has exceeded analysts’ earnings expectations for nine consecutive quarters.
Analysts’ Reviews on UAL Ahead of Q4 Results
Heading into the Q4 results, several analysts reiterated their Buy recommendation on United Airlines stock, with many raising their price targets
Recently, Bank of America analyst Andrew Didora increased the price target for UAL stock to $120 from $100 and reaffirmed a Buy recommendation. The analyst believes that UAL is poised to benefit from strong growth in premium, corporate, and transatlantic travel sectors, as indicated by peer Delta Air Lines’ (DAL) results. Didora expects UAL to report solid Q4 results and a better-than-expected outlook for Q1 2025. He also highlighted UAL’s strategic advantages like premium offerings and key hub locations.
Likewise, Evercore analyst Duane Pfennigwerth increased the price target for United Airlines stock to $135 from $85 and maintained a Buy rating. Across his airlines and lodging coverage, the analyst noted that the post-election demand pickup was faster and better than the initial expectations. He also believes that the period between Thanksgiving and the peak holiday season and corporate travel towards the end of the year also likely contributed to robust results.
Options Traders Expect Notable Movement
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 10.8% move in either direction in reaction to UAL’s Q4 results.
Is UAL a Good Stock to Buy Now?
Wall Street is highly bullish on United Airlines stock, with a Strong Buy consensus rating based on 17 unanimous Buys. The average UAL stock price target of $128.06 implies 19.3% upside potential.
