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

ChargePoint: Low Quality Beat

By -
Image
  ChargePoint beat FQ2'22 revenue estimates, but the losses are mounting. The company guided up FY22 numbers partly due to acquisitions. The stock still trades at an estimated 21x FY23 number leaving limited upside for the stock and reinforcing why venture funds sold 13.8 million shares. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.  Learn More » After  solid FQ2'22 earnings ,  ChargePoint Holdings  ( CHPT ) has seen a nice bump in the stock. Now investors have to confront the valuation divide and deal with the past insider sales likely leading to future sales on any stock rallies. My  investment thesis  remains very Bearish on the EV charging station stock on any rallies into the mid-$20s. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.  Update - Sept. 8 Be cautious when analysts strugg...
Read more

Baidu: Historical Support At $80

By -
Image
Updated - Nov. 15, 2024 Despite leadership in AI and robotaxis in China, Baidu trades right back down to historical support around $80. The stock has now dipped $30 following the volatile move on hope for the Chinese government to fully stimulate the economy.  Update - Aug. 22, 2024 Baidu didn't report anything impressive from robotaxis or AI yet during Q2. The big robotaxi ramp up in Wuhan hasn't started yet. The stock did hold the key $80 support level.  Q2 Non-GAAP EPADS of $2.89 beats by $0.29. Revenue of $4.67B (flat Y/Y) misses by $70M. Adjusted EBITDA was $1.26 billion and adjusted EBITDA margin was 27%.  Adjusted EBITDA for Baidu Core was $1.19 billion and adjusted EBITDA margin for Baidu Core was 32%. Free cash flow was $862 million, and free cash flow excluding iQIYI was $810 million. Original article posted on Aug. 18 Baidu trades at levels first seen in 2011 despite strong growth catalysts. The Chinese search leader will report Q2 earnings on August 22, reveal...
Read more

Occidental: Still Producing Too Much Oil

By -
Image
Though oil continues plunging, the oil giants continue producing more. For Q4, Occidental Petroleum (OXY) had roughly flat production. The worst part is that OXY plans to grow production by 2% to 4% in 2016. The stock has held up somewhat strong, but the inability to turn off the spigot remains troubling. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 
Read more