What Does Wall Street See for United Continental Holdings' Q2?

Seth Jayson, The Motley Fool
Updated

United Continental Holdings (NYS: UAL) is expected to report Q2 earnings around July 26. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict United Continental Holdings' revenues will improve 2.5% and EPS will expand 16.1%.

The average estimate for revenue is $10.05 billion. On the bottom line, the average EPS estimate is $1.73.


Revenue details
Last quarter, United Continental Holdings booked revenue of $8.60 billion. GAAP reported sales were 4.9% higher than the prior-year quarter's $8.20 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.87. GAAP EPS were -$1.36 for Q1 versus -$0.65 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 20.1%, 410 basis points worse than the prior-year quarter. Operating margin was -1.2%, 260 basis points worse than the prior-year quarter. Net margin was -5.2%, 260 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $38.10 billion. The average EPS estimate is $4.36.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 391 members out of 804 rating the stock outperform, and 413 members rating it underperform. Among 191 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 give United Continental Holdings a green thumbs-up, and 114 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 $31.57.

The article What Does Wall Street See for United Continental Holdings' Q2? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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