United Airlines (NASDAQ: UAL) is set to report its Q2 2024 results on Wednesday, July 17, with revenues expected to reach $15.2 billion and earnings at $3.99 per share, in line with consensus estimates. The company is expected to benefit from strong travel demand, and there is room for its stock to grow from its current levels of under $45. UAL stock has shown little change in recent years, with returns of 1% in 2021, -14% in 2022, and 9% in 2023, underperforming the S&P 500. However, the Trefis High Quality Portfolio has outperformed the S&P 500 consistently over the same period.
Despite the uncertain macroeconomic environment with high oil prices and elevated interest rates, UAL stock is seen as attractive from a valuation perspective, with an estimated valuation of $60 per share, representing a 35% upside from current levels. The company is expected to see adjusted earnings of $9.75 per share for the full year 2024, with a P/E multiple of 6x. In Q1, United Airlines reported revenue of $12.5 billion, up 9.7% year-over-year, with an improved adjusted pre-tax margin and a bottom line standing at $(0.15) on an adjusted basis. The company’s results were impacted by the grounding of Boeing 737 MAX aircraft in January.
Looking ahead to the latest quarter, United Airlines is expected to benefit from increased capacity, while occupancy and yields may be slightly lower than the prior-year quarter. Non-fuel costs are anticipated to rise due to increased wages, but the company is expected to post in-line results for Q2, with an attractive stock outlook. Investors can also assess how other United Airlines peers fare on important metrics for valuable comparisons across industries. Overall, United Airlines continues to navigate challenges in the industry while maintaining a strong position in the market.
In conclusion, United Airlines is poised to announce its Q2 2024 results, with expectations of strong revenues and earnings in line with consensus estimates. The company is set to benefit from increased travel demand and has potential for stock growth from its current levels. Despite challenges in the macroeconomic environment, UAL stock is seen as attractive from a valuation perspective, with a forecasted upside potential of 35%. With a history of underperforming the S&P 500, United Airlines remains a key player in the airline industry, with room for growth and continued success in the market. Investors can look forward to the company’s performance in the latest quarter and assess its position in comparison to industry peers for valuable insights.
