United Airlines Gains in After-Hours Despite $2.6 Billion Quarterly Loss

United Airlines Gains in After-Hours Despite $2.6 Billion Quarterly Loss

Travel restrictions due to the pandemic continue to weigh on United Airlines’ (UAL) financials. It reported an adjusted net loss of $2.6 billion in 2Q, as compared to adjusted net income of $1.1 billion in the prior-year period.

The company reported an adjusted loss of $9.31 per share compared to earnings of $4.21 per share in the prior-year period. Quarterly loss per share was higher than analysts’ estimates of $9.02.

Despite hefty 2Q loss, stock was up over 1% in after-hours as revenues beat analysts’ estimates. United Airlines’ quarterly revenues of $1.48 billion surpassed analysts’ estimates of $1.32 billion. Besides, cost-savings measures and optimism over the resumption of flights and a gradual uptick in traffic support its stock.

On June 29, Goldman Sachs analyst Catherine O’Brien raised the price target to $61 from $40. O’Brien, in a research note, said “passenger volumes have begun to lift off the bottom seen in April, and improving trends in markets that have reopened are encouraging.”

Overall UAL shows a Moderate Buy Street consensus. The average analyst price target stands at $41.70 suggesting 26.1% upside potential. (See United Airlines’ stock analysis on TipRanks).

Related News:IBM Pops 5% in Extended Trading After Quarterly Profit Beats ExpectationsHalliburton Jumps 5% as 2Q Earnings Top EstimatesOrganiGram Plunges 9% On Soft Top Line; Weak Gross Margins

The post United Airlines Gains in After-Hours Despite $2.6 Billion Quarterly Loss appeared first on TipRanks Financial Blog.

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