Analysts are weighing in on how United Continental Holdings Inc (NYSE:UAL), might perform in the near term. Wall Street analysts have a much less favorable assessment of the stock, with a mean rating of 2.1. The stock is rated as buy by 7 analysts, with 3 outperform and 5 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.
For the current quarter, the 15.00 analysts offering adjusted EPS forecast have a consensus estimate of $2.43 a share, which would compare with $3.31 in the same quarter last year. They have a high estimate of $2.60 and a low estimate of $2.30. Revenue for the period is expected to total nearly $9.34B from $9.91B the year-ago period.
For the full year, 15.00 Wall Street analysts forecast this company would deliver earnings of 8.15 per share, with a high estimate of $9.03 and a low estimate of $6.85. It had reported earnings per share of $11.88 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $36.40B versus 37.86B in the preceding year.
The analysts project the company to maintain annual growth of around 3.33% percent over the next five years as compared to an average growth rate of 18.20% percent expected for its competitors in the same industry.
Among the 14 analysts Data provided by Thomson/First Call tracks, the 12-month average price target for UAL is $64.71 but some analysts are projecting the price to go as high as $79.00. If the optimistic analysts are correct, that represents a 89 percent upside potential from the recent closing price of $41.83. Some sell-side analysts, particularly the bearish ones, have called for $54.00 price targets on shares of United Continental Holdings Inc (NYSE:UAL).
In the last reported results, the company reported earnings of $3.31 per share, while analysts were calling for share earnings of $3.31. It was an earnings surprise of 0.00%percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.
United Continental Holdings, Inc., together with its subsidiaries, provides air transportation services in North America, the Asia-Pacific, Europe, the Middle East, Africa, and Latin America. The company transports people and cargo through its mainline and regional operations. As of December 31, 2015, it operated 1,236 aircraft. United Continental Holdings, Inc. also sells fuel; and offers catering, ground handling, and maintenance services for third parties. The company was formerly known as UAL Corporation and changed its name to United Continental Holdings, Inc. in October 2010. United