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Continental Airlines (CAL) is expected to report Q2 earnings Tuesday, July 21, with a conference call scheduled for 10:30 am ET.

Guidance

Analysts are looking for EPS of ($1.36) on revenue of $3.15B. The consensus range is ($1.50)-($1.25) for EPS, and $3.13B-$3.17B for revenue, according to First Call. The company announced in July it expects to record special charges during Q2 totaling $44M of expense, of which $43M consists of non-cash items. Aircraft-related charges in Q2 include $31M of non-cash impairments on owned Boeing 737-300 and 737-500 aircraft and related assets, an $8M non-cash charge related to the disposition of three 737-300 aircraft and a $4M non-cash charge to write off certain obsolete spare parts.

Analyst Views

Early in July, Continental was upgraded to Overweight from Equal Weight at Morgan Stanley. The firm upgraded the company based on relative valuation and views Continental as a "survivor." Additionally, the analyst lowered 2009 industry estimates but believes it is the last cut for the year and is incrementally more positive on the sector. Investors should note the company's shares have risen 13.2% in the past month currently trading around $10.38.

Source: Earnings Preview: Continental Airlines