United Airlines (NASDAQ:UAL) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Earnings beat: United reported Q EPS of $1.19, beating estimates by $0.04, and revenue of $14.61 billion versus a $14.19 billion consensus, with a net margin of 5.68% and ROE of 25.13%.
• Stock reaction and valuation: Shares fell to $97.13 (down $1.78) on above-average volume; the stock trades at a P/E of 9.5 with a $31.5 billion market cap and sits below both its 50- and 200-day moving averages.
• Sentiment and risks: Analysts maintain a consensus "Buy" with a $131.19 target despite mixed rating changes, while renewed merger speculation was rebuffed by American and drew bipartisan regulatory concern — and President Brett J. Hart sold 19,000 shares, trimming his stake.

United Airlines (NASDAQ:UAL - Get Free Report) released its earnings results on Tuesday. The transportation company reported $1.19 earnings per share for the quarter, topping the consensus estimate of $1.15 by $0.04, Zacks reports. The company had revenue of $14.61 billion during the quarter, compared to the consensus estimate of $14.19 billion. United Airlines had a net margin of 5.68% and a return on equity of 25.13%.

United Airlines Stock Performance

Shares of NASDAQ:UAL traded down $1.78 during trading on Tuesday, reaching $97.13. 9,612,807 shares of the company's stock traded hands, compared to its average volume of 7,191,725. The stock has a market capitalization of $31.53 billion, a P/E ratio of 9.50, a price-to-earnings-growth ratio of 0.85 and a beta of 1.28. The company has a 50 day moving average of $98.85 and a 200-day moving average of $102.50. The company has a debt-to-equity ratio of 1.35, a current ratio of 0.65 and a quick ratio of 0.59. United Airlines has a 12 month low of $65.26 and a 12 month high of $119.21.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. Wall Street Zen downgraded United Airlines from a "buy" rating to a "hold" rating in a report on Saturday, March 14th. Wells Fargo & Company lowered their price target on United Airlines from $145.00 to $130.00 and set an "overweight" rating for the company in a report on Monday, March 16th. Bank of America boosted their price target on United Airlines from $120.00 to $130.00 and gave the company a "buy" rating in a report on Tuesday, January 6th. Morgan Stanley set a $150.00 price target on United Airlines and gave the company an "overweight" rating in a report on Thursday, January 8th. Finally, Argus lowered their price target on United Airlines from $140.00 to $135.00 and set a "buy" rating for the company in a report on Thursday, January 22nd. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus target price of $131.19.

Insider Buying and Selling

In related news, President Brett J. Hart sold 19,000 shares of the company's stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $106.45, for a total transaction of $2,022,550.00. Following the completion of the transaction, the president directly owned 264,638 shares in the company, valued at $28,170,715.10. This represents a 6.70% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.86% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the stock. JPL Wealth Management LLC bought a new position in United Airlines in the 3rd quarter worth about $29,000. Wiser Advisor Group LLC bought a new position in United Airlines in the 3rd quarter worth about $41,000. Quattro Advisors LLC bought a new position in United Airlines in the 4th quarter worth about $44,000. DV Equities LLC bought a new position in United Airlines in the 4th quarter worth about $51,000. Finally, Wilkerson Advisory Group LLC bought a new position in United Airlines in the 4th quarter worth about $61,000. 69.69% of the stock is currently owned by institutional investors.

More United Airlines News

Here are the key news stories impacting United Airlines this week:

• Positive Sentiment: Management/market-watchers expect clarity on United’s growth plans at the upcoming earnings release; a strong guidance/strategy could be a catalyst. Earnings To Watch
• Positive Sentiment: Technical/breadth indicators have flashed buy signals for UAL in some screeners, which can attract momentum traders if headlines stabilize. MarketBeat Buy Signals
• Neutral Sentiment: CEO Scott Kirby’s reported suggestion of a potential tie-up with American briefly resurfaced merger speculation — the idea hasn’t gained broad support, leaving upside from consolidation uncertain. Forbes: Merger Hint
• Neutral Sentiment: Management’s recent earnings transcript is available for investors to read for tone on capacity, pricing and M&A appetite — details there could sway sentiment either way. Earnings Transcript
• Negative Sentiment: American Airlines publicly rejected a merger proposal, extinguishing a near-term path to consolidation and signaling strong antitrust resistance — this raised political and regulatory risks for any future tie-up. American Rejects Merger
• Negative Sentiment: Bipartisan senators have signaled concern about a UAL–American combination, increasing the likelihood of heavy regulatory scrutiny and making deal outcomes more uncertain. WSJ: Senators Warn
• Negative Sentiment: Rising jet fuel costs tied to geopolitical tensions (Iran-related) are a clear near-term headwind to margins and were flagged repeatedly in pre-earnings coverage; fuel volatility could pressure results. Barron's: Fuel Costs
• Negative Sentiment: Public comments from President Trump about Spirit and merger chatter add political noise; combined with American's dismissal, the episode may prolong headline-driven volatility. Fox Business: Trump on Spirit/Merger

About United Airlines

United Airlines Holdings, Inc operates United Airlines, a major U.S. full-service passenger carrier providing scheduled air transportation for passengers and cargo. The company offers a comprehensive route network that covers domestic markets across the United States as well as extensive international service to Europe, Asia, Latin America, and the Pacific. United operates a mixed fleet of narrow- and wide-body aircraft on point-to-point and hub-and-spoke routes, and supports corporate and leisure travel through offerings such as premium cabins, basic economy, and ancillary services including baggage, seat selection and in-flight amenities.

In addition to passenger operations, United provides cargo services through United Cargo, handling freight, mail and specialized shipments.

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