United Airlines jumps ~4% despite Q3 EPS miss and weak Q4 profit guidance as oil price pullback lifts airlines
What happened
United Airlines (UAL) reported third-quarter earnings of $2.54 per share on revenue of $18 billion for its third quarter, per Investor's Business Daily. Earnings missed Wall Street's target by 3 cents while sales were in line with estimates, as soaring fuel prices hurt profits during the quarter. The carrier's profit outlook for the current quarter came in at $1 per share at the midpoint, well below analyst targets of $1.64. Despite the miss and the soft guide, United shares got off to a poor start in early trade but then reversed and jumped nearly 4% as the price of oil receded during the session. The stock remained below its 50-day moving average.
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Start your free 14-day trialWho’s affected
- United Airlines (UAL) — up ~4% despite miss; sector read-through for American (AAL), Delta (DAL) and Southwest (LUV), which face the same fuel-cost dynamics; refiners and jet-fuel suppliers conversely see margin pressure as crude eases.
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