United Airlines Holdings, Inc. Just Recorded A 6.3% EPS Beat: Here's What Analysts Are Forecasting Next

It's been a good week for United Airlines Holdings, Inc. (NASDAQ:UAL) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.6% to US$99.14. The result was positive overall - although revenues of US$15b were in line with what the analysts predicted, United Airlines Holdings surprised by delivering a statutory profit of US$2.90 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for United Airlines Holdings from 17 analysts is for revenues of US$63.5b in 2026. If met, it would imply a solid 8.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 24% to US$12.60. Before this earnings report, the analysts had been forecasting revenues of US$63.3b and earnings per share (EPS) of US$12.71 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for United Airlines Holdings

The analysts reconfirmed their price target of US$121, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic United Airlines Holdings analyst has a price target of US$156 per share, while the most pessimistic values it at US$62.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that United Airlines Holdings' revenue growth is expected to slow, with the forecast 7.0% annualised growth rate until the end of 2026 being well below the historical 25% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it seems obvious that United Airlines Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that United Airlines Holdings' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$121, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on United Airlines Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for United Airlines Holdings going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for United Airlines Holdings that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.