United Airlines (UAL) Gaining on Upbeat Q2 Passenger Revenue Guidance
NEW YORK (TheStreet) -- Shares of United Continental (UAL) - Get Report are up 6.3% to $45.08 this morning after the company announced positive guidance for the second quarter of 2016 with a lower-than-expected decline in passenger revenue.
The airline company expects passenger revenue to drop 6.5%-6.75% to 12.54-12.5 cents per available seat mile.
Analysts had been preparing for a decline of as much as 7%, according to Reuters.
United attributes the lower-than-expected decline to higher international airfares and increased air travel around the Fourth of July.
Passenger revenue has been on the decline for the past year throughout the industry as the number of flights begin to outpace demand.
Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B-.
The company's strengths can be seen in multiple areas, such as its notable return on equity and attractive valuation levels. TheStreet Ratings feels its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: UAL
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.