IB Net Payout Yields Model

Invest like me - only at Covestor.com

United Airlines: Soaring To New Heights

By -

  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » 

Update - March 13

Somehow United Airlines is down 5% to 6% in after hours after announcing '23 EPS is still on target to $10 to $12, yet the Q1 numbers will dip due to the pilot contract being signed in Q1, up from Q2. 

  • United Airlines Holdings (NASDAQ:UAL) shares slumped after the bell on Monday after providing a pessimistic outlook for the first quarter of 2023.
  • The company said that it now expects an adjusted loss per share between $0.60 and $1.00 in Q1
  • “The Company continues to see a strong demand environment and now expects first quarter 2023 total operating revenue to be up approximately 51% versus first quarter 2022, higher than the Company's initial approximately 50% expectation provided in January 2023,” the filing stated. “Higher capacity in the quarter is contributing to better top line revenue performance as the Company's operational reliability continues to lead the industry. Due to better completion rates, first quarter 2023 capacity is now expected to be up around 23% versus first quarter 2022, three points higher than the Company's previous expectations.”
  • The Company continues to expect a full year 2023 adjusted pre-tax margin4 of approximately 9% and full year adjusted diluted earnings per share1 of $10 to $12.


Original article posted on Jan. 18

  • United Airlines reported another strong quarter for December, easily smashing analyst estimates.
  • The legacy airline guided to 2023 EPS of $10 to $12, far above analyst estimates.
  • Domestic air travel spending remains below pre-COVID levels of GDP providing solid growth potential in 2023.
  • The stock is far too cheap with the profit machine being unleashed and industrial transport stocks trading at up to 3x the P/E multiple of United Airlines.
Despite knowing legacy airlines were posting near record holiday earnings, United Airlines (NASDAQ:UAL) only trades at approximately half of pre-COVID levels. The airline actually reported shockingly strong guidance for 2023. My investment thesis remains ultra bullish on

Read the full article on Seeking Alpha. 

Disclosure: Long UAL. Please review the disclaimer page for more details. 

Comments

Post a Comment

Popular posts from this blog

Aurora Cannabis: Deal Or No Deal

By -
Aurora Cannabis was left out of the major deal making in 2018. The cannabis company updated FQ2 guidance to revenues of $50 to $55 million with a continued focus on pure production growth. The stock is down as the market is becoming less impressed with commodity farming operations due to the prime Oregon example. The stock is below key resistance at $5.40 as medical cannabis patient totals failed to impress. As the end of 2018 came and went,   Aurora Cannabis   ( ACB ) was a notable absentee from the deal making in the cannabis market. Just about all of the other major Canadian cannabis players got large investments or signed up powerful partnerships, but the related stocks didn't generally maintain rallies following the deals. Based on the early legalization data in Canada and Oregon, the best option for Aurora Cannabis might actually be selling production capacity while the Canadian market remains hot. Read the full article on Seeking Alpha.  Disclosure: No
Read more

C3.ai: Out Of Steam (Rating Downgrade)

By -
Image
This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   Update - June 23, 2023 C3.ai has fallen back to earth after the Investor Day meeting. The Deutsche Bank analyst call on the meeting suggests the company still isn't ready to produce actual numbers from the generative AI demand.  C3.ai ( NYSE: AI ) shares  fell more than 8%  on Friday after investment firm Deutsche Bank reiterated its sell rating on the enterprise software company after it held its investor meeting. Analyst Brad Zelnick said the event "left a lot to be desired" as there were  no details on financials, "limited" updates on the company's operations and investors did not really attend the event, despite it being positioned as for them. "While we appreciate the vast opportunity presented by AI, the event did nothing to ease our skepticism on the true differentiation of the company's platform, its traction with custome
Read more

Archer Aviation: Promising Developments

By -
Image
  Update - June 12, 2023 Archer is finally in the midst of a breakout on the positive FAA news.  -The acting administrator of the Federal Aviation Administration, Billy Nolen, is in talks to join Archer Aviation (NYSE:ACHR), per a report from Reuters. -Citing sources familiar with the situation, the report indicates Nolen will depart his current position atop the FAA in the next few weeks and will then look to transition to a role at Archer (ACHR). Archer’s rival Joby Aviation (JOBY) previously appointed former FAA chief Michael Huerta to a position on its board in March. Original article posted on Jan. 19 This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   Archer Aviation Inc. jumped to $3 on the excitement of small insider purchases. The eVTOL manufacturer recently announced several major developments towards FAA certification and production of the Midnight aircraft. Archer Aviation stock is interesting, with a $70
Read more