United Airlines (NASDAQ: UAL) is set to announce its Q1 2024 financial results on April 17. Analysts anticipate the company's revenues to reach $12.4 billion, slightly below the consensus estimate of $12.5 billion, representing an 8% year-over-year growth. The expected bottom line is projected to be $(0.45) per share on an adjusted basis, surpassing the consensus estimate of $(0.54).
Despite the mixed expectations for Q1, there is optimism for United Airlines' stock to rise from its current levels below $45. The company's stock performance has been relatively stagnant over the past few years, showing minimal movement from early 2021 to the present, in contrast to the S&P 500's 40% increase during the same period.
United Airlines has faced challenges in outperforming the S&P 500 in recent years, reflecting broader trends in the market. However, the company's valuation appears attractive, with an estimated value of $60 per share, indicating a potential 40% upside from its current price.
The grounding of Boeing 737 MAX earlier in the year has impacted United Airlines' operations, leading to delays in launching new international routes. Despite this, the company is expected to benefit from strong travel demand in the upcoming quarter.
In the previous quarter, United Airlines reported a 10% year-over-year revenue increase, driven by a rise in available seat miles. However, the adjusted pre-tax margin declined, resulting in a decrease in the bottom line. Fuel prices may pose a challenge in Q1, with potential sequential increases affecting the pre-tax margin.
While United Airlines stock appears undervalued, investors are advised to consider peer comparisons and industry metrics for a comprehensive analysis. The company's performance in the coming months will be closely monitored amidst the current macroeconomic uncertainties.
For more insights on United Airlines' earnings preview and industry comparisons, refer to the interactive dashboard analysis available.
