United Continental's Management Has No Answers for Wall Street
On Wednesday afternoon, United Continental (NYSE: UAL) reported subpar third-quarter earnings results (as expected) and provided a dismal outlook for Q4. The following day, a collection of Wall Street analysts raked United's management over the coals on the company's quarterly earnings call.
Indeed, while Wall Street tends to be overly focused on short-term performance, the analysts were entirely justified in questioning United's strategic direction. Management has laid out lofty turnaround goals, but United Continental isn't making tangible progress toward improving its earnings performance.
During 2015 and 2016, United Continental posted adjusted pretax margins of around 12%. While these were record results for the company, United's profit margin remained well below the industry average. At its investor day last fall, management presented a number of initiatives designed to produce $4.8 billion of earnings improvement by 2020.
Source: Fool.com
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