Stock Under Consideration: United Continental Holdings Inc (UAL)

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United Continental Holdings Inc (NYSE:UAL) reported four quarter earnings on Thursday, January 21. The company earned $2.54 per share. Analysts had been modeling earning per share of $2.56 with $9.08B in revenue.

On United Continental Holdings Inc (UAL) reported its fourth-quarter and full-year 2015 financial results.

  • UAL reported full-year net income of $4.5 billion, or $11.88 per diluted share, excluding special items. Including special items, UAL reported full-year net income of $7.3 billion. These results include a nonrecurring $3.1 billion non-cash benefit associated with the reversal of the company’s income tax valuation allowance.
  • UAL reported fourth-quarter net income of $934 million, or $2.54 per diluted share, excluding special items. Including special items, UAL reported fourth-quarter net income of $823 million.
  • Today, UAL announced it reached an agreement to acquire 40 new Boeing 737-700 aircraft which will enter the fleet beginning in mid-2017, replacing a portion of the capacity currently operated by regional partners.
  • Employees earned a record $698 million in profit sharing for full-year 2015.
  • “We improved our operational performance, continued to invest in our products and services and achieved record financial performance,” said Brett J. Hart, UAL’s acting chief executive officer. “We have great momentum as we head into 2016 and are committed to continuously earning the trust of our customers and employees. I’m proud of what we accomplished together, running a reliable airline and making the right investments to deliver shareholder value. We expect first-quarter pre-tax margin to be between 8 and 10 percent, excluding special items.”

United Continental Holdings Inc (NYSE:UAL) earnings per share showed an increasing trend of 564.50% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 0.28%. Analysts project EPS growth over the next 5 years at 14.58%. It has EPS annual growth over the past 5 fiscal years of 78.30% when sales grew 10.20%. It reported -3.00% sales growth and 2839.30 percent EPS growth in the last quarter.

United Continental Holdings Inc (NYSE:UAL) is trading at $48.87, up 1.08 percent from 52-week low of $42.17. The stock trades at 5.38 times forward earnings and is down -31.54% from its peak. The consensus price target is $75.61. The P/S ratio stood at 0.48, below a peak of $15.89. Its volume clocked up at 4.57 million shares, which is higher than the average volume of 5.68 million shares. Its market capitalization currently stands at $18.22 billion.

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