United (UAL) Q3 Earnings In-Line, PRASM Down 3.7%

United Continental Holdings Inc. UAL just released its third quarter fiscal 2017 earnings results, posting diluted earnings of $2.12 per share and revenue of $9.9 billion. Currently, UAL is a Zacks Rank #5 (Strong Sell), and is down a slight 0.79% to $67.45 per share in trading shortly after its earnings report was released.

United:

Matched earnings estimates. The company posted earnings of $2.12 per share, meeting the Zacks Consensus Estimate of $2.12 per share. Net income was $637 million for the quarter.

Beat revenue estimates. The company saw revenue figures of $9.9 billion, topping our consensus estimate of $9.86 billion and coming in roughly flat year-over-year.

Consolidated passenger revenue per available seat mile (PRASM) was down 3.7% compared to the year-ago period.

Operating expenses were $8.8 billion in Q3, up 6% year-over-year. Consolidated unit cost per available seat mile (CASM) rose 3% compared to the third quarter of 2016 due largely to higher fuel and labor expenses.

"Our employees continued to run a great operation and set new company records during the third quarter despite a challenging operational environment with an unprecedented series of storms. Our team set new records for on-time performance this quarter and had the fewest maintenance delays in over five years," said Scott Kirby, president of United Airlines.

Here’s a graph that looks at United Continental’s price, consensus, and EPS surprise:

United Continental Holdings, Inc. Price, Consensus and EPS Surprise

United Continental Holdings, Inc. Price, Consensus and EPS Surprise | United Continental Holdings, Inc. Quote

United Continental Holdings, Inc. is the holding company for United Airlines and Continental Airlines. The Company operates its businesses through two reporting segments: Mainline and Regional Affiliates. Together with United Express, Continental Express and Continental Connection, these airlines operate throughout the Americas, Europe, Asia and Africa from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, Tokyo and Washington, D.C. United Continental is headquartered in Chicago.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>
 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
United Continental Holdings, Inc. (UAL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.