United Continental Holdings
The 10-second takeaway
For the quarter ended June 30 (Q2), United Continental Holdings met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
United Continental Holdings logged revenue of $9.94 billion. The 12 analysts polled by S&P Capital IQ foresaw revenue of $10.04 billion on the same basis. GAAP reported sales were 2.4% higher than the prior-year quarter's $9.70 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.41. The 15 earnings estimates compiled by S&P Capital IQ averaged $1.70 per share. GAAP EPS of $0.89 for Q2 were 36% lower than the prior-year quarter's $1.40 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.9%, 140 basis points worse than the prior-year quarter. Operating margin was 7.9%, 80 basis points worse than the prior-year quarter. Net margin was 3.4%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $10.38 billion. On the bottom line, the average EPS estimate is $2.60.
Next year's average estimate for revenue is $38.09 billion. The average EPS estimate is $4.33.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 391 members out of 803 rating the stock outperform, and 412 members rating it underperform. Among 196 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 give United Continental Holdings a green thumbs-up, and 122 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on United Continental Holdings is outperform, with an average price target of $31.61.
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