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United Airlines Holdings Inc. today changed to +3% for this week. The stock has gained 25% year-to-date and 38% over the past three months. The company is scheduled to report fourth-quarter 2022 results on Tuesday, January 17, after the market closes. Here’s what to expect from the upcoming earnings report:
results
Analysts forecast revenue of $12.2 billion for United Airlines for the fourth quarter of 2022. This compares to revenue of $10.8 billion reported in the fourth quarter of 2019. In the third quarter of 2022, the company generated total operating revenue of $12.9 billion, which is an increase of 13% from the same period in 2019.
The company sees strong demand trends as leisure travel remains strong and hybrid work models allow more flexibility for travel. United expects a strong revenue environment in the fourth quarter of 2022. The company expects TRASM in Q4 to increase 24-25% from the 2019 period with less capacity by 9-10%. This is close to the number of the third quarter of an increase of 25.5% with a capacity less than 10% compared to Q3 2019.
Profit and loss
Analysts expect United to report EPS of $2.12 in Q4 2022. This compares to adjusted EPS of $2.67 in Q4 2019. In the third quarter of 2022, the company reported adjusted EPS of $2.81, which was down 31% from the same period in 2019. For the quarter for the fourth quarter of 2022, United has guided for adjusted EPS of $2.00-2.25.
Adjusted operating margin was 11.5% in the third quarter of 2022. The airline expects adjusted operating margin in Q4 2022 to be approximately 10%, which is higher than the 9.1% reported in Q4 2019.
cost
In the third quarter of 2022, the cost per available seat mile, excluding fuel (CASM-ex) rose 14.5% from the same period in 2019. For the fourth quarter of 2022, the company expects CASM-ex to rise 11-12 percent compared Q4 2019.
Click here to read the full transcript of United Airlines’ Q3 2022 earnings conference call
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