: United Airlines stock rallies on stronger full-year forecast
Shares of United Airlines Holdings Inc. UAL rallied after hours on Wednesday after the air carrier gave a more upbeat full-year profit outlook, as the travel industry’s rebound runs up against nationwide service issues. For the full year, United raised its per-share profit forecast to $11 to $12, up from a prior range of $10 to $12 and above FactSet forecasts for $9.78. For the third quarter, United said it expected to report adjusted earnings per share of $3.85 to $4.35, better than FactSet expectations for $3.76. The airline also forecast sales growth of 10% to 13%, above FactSet forecasts for around 9%. Shares rose 2.5% after hours. The company reported net income of $1.1 billion, or $3.24 a share, compared with $329 million, or $1 a share, in the same quarter last year. Revenue increased to $14.18 billion, up from $12.11 billion in the prior-year quarter. Adjusted for special charges and debt extinguishment, United earned $5.03 a share. Analysts polled by FactSet expected United to report adjusted earnings per share of $4.03, on sales of $13.9 billion. United said the results and outlook showed that efforts to upgauge the airline and strengthen flight-connectivity at its mid-continent airports were working.
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