United Continental Holdings
The 10-second takeaway
For the quarter ended June 30 (Q2), United Continental Holdings met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share dropped. GAAP earnings per share grew significantly.
Margins grew across the board.
United Continental Holdings booked revenue of $10.00 billion. The nine analysts polled by S&P Capital IQ hoped for revenue of $9.98 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
EPS came in at $1.35. The 14 earnings estimates compiled by S&P Capital IQ predicted $1.39 per share. Non-GAAP EPS of $1.35 for Q2 were 4.3% lower than the prior-year quarter's $1.41 per share. GAAP EPS of $1.21 for Q2 were 36% higher than the prior-year quarter's $0.89 per share.
For the quarter, gross margin was 29.1%, 220 basis points better than the prior-year quarter. Operating margin was 8.2%, 30 basis points better than the prior-year quarter. Net margin was 4.7%, 130 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $10.32 billion. On the bottom line, the average EPS estimate is $2.21.
Next year's average estimate for revenue is $38.11 billion. The average EPS estimate is $3.32.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 381 members out of 785 rating the stock outperform, and 404 members rating it underperform. Among 188 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give United Continental Holdings a green thumbs-up, and 82 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 $34.79.
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