Why United Continental Holdings (UAL) Stock Is Surging Today

NEW YORK (TheStreet) -- Shares of United Continental Holdings Inc. (UAL) are higher by 6.70% to $49.08 at the start of trading on Thursday after the airline company reported an increase in net income to $789 million, or $2.01 per diluted share for the 2014 second quarter, compared to $469 million, or $1.21 per diluted share for the year ago period.

Adjusted net income was $919 million, or $2.34 per diluted share for the most recent quarter, versus $521 million, or $1.35, for the 2013 second quarter.

Analysts polled by Thomson Reuters expected earnings of $2.19 per share.

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United Continental's total revenue for the 2014 second quarter was $10.3 billion, a 3.3% increase over the $10 billion reported for last year's second quarter.

Analysts expected revenue of $10.31 billion for the quarter.

Separately, TheStreet Ratings team rates UNITED CONTINENTAL HLDGS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate UNITED CONTINENTAL HLDGS INC (UAL) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins."

UAL ChartUAL data by YCharts

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