Earnings Preview: Continental Airlines

Jul.21.10 | About: United Continental (UAL)

Continental Airlines (NYSE:CAL) is expected to report Q2 earnings Thursday, July 22 before the market open, with a conference call scheduled for 10:30 am ET.


Analysts are looking for EPS of $1.51 on revenue of $3.71B. The consensus range is very wide at $1.30-$1.71 for EPS, and $3.63B-$3.83B for revenue, according to First Call. Continental reported mixed Q1 results, missing EPS but narrowly beating revenue estimates. Since then, the shares have traded sideways. Recent sentiment on the stock has been positive in the backdrop of the merger with United Airlines, announced on May 3. On June 29, Soleil initiated Continental with a Buy rating and a target of $30.

Analyst Views

On June 21, Jessup and Lamont raised its Q2 EPS estimate for the shares to $1.41 from 82c. Deutsche Bank also initiated the stock with a Buy on June 14 and a target price of $34. Although recent sentiment has been overwhelmingly positive, government review of the merger between Continental and United may be slowing any advance of the stock price.