Yahoo Finance Analysts Have Made A Financial Statement On United Airlines Holdings, Inc.'s (NASDAQ:UAL) Yearly Report
It's been a good week for United Airlines Holdings, Inc. (NASDAQ:UAL) shareholders, because the company has just released its latest annual results, and the shares gained 4.0% to US$40.49. United Airlines Holdings reported in line with analyst predictions, delivering revenues of US$54b and statutory earnings per share of US$7.89, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for United Airlines Holdings
After the latest results, the 18 analysts covering United Airlines Holdings are now predicting revenues of US$56.4b in 2024. If met, this would reflect a modest 5.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 14% to US$9.11. In the lead-up to this report, the analysts had been modelling revenues of US$56.5b and earnings per share (EPS) of US$9.14 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$60.90. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values United Airlines Holdings at US$98.00 per share, while the most bearish prices it at US$35.00. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 5.1% growth on an annualised basis. That is in line with its 5.8% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 7.5% annually. So although United Airlines Holdings is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$60.90, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for United Airlines Holdings going out to 2026, and you can see them free on our platform here..
Before you take the next step you should know about the 2 warning signs for United Airlines Holdings that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
