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Thursday, March 30, 2023
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United Airlines, First Republic, Charles Schwab

United Airlines (UAL) 

United Airlines stock fell more than 7% after the company said it expects to see a quarterly loss stemming from its labor contract. United now sees a first-quarter loss of 60 cents to $1 per share. Analysts had been expecting a profit of 69 cents.

The company said it’s seeing “new seasonal demand patterns, with lower-demand months such as January and February 2023 growing less than higher-demand months.” United now expects total revenue per available seat mile for the first quarter 2023 to increase between 22% to 23% versus first quarter 2022, below its original guidance of up approximately 25%.

Airlines stocks have outperformed this year as consumers opt to spend their money on traveling over buying goods or discretionary items. United Airline’s stock is up about 30% year-to-date.

This photograph taken on March 8, 2023 shows a United airlines Airbus A319-132 aircraft parked at the gate at George Bush International Airport (IAH) in Houston Texas. (Photo by Daniel SLIM / AFP) (Photo by DANIEL SLIM/AFP via Getty Images)

First Republic Bank (FRC)

Shares of First Republic Bank rebounded 5% in after-hours following a brutal day for the San Francisco-based bank. First Republic’s stock closed a record 62% lower on Monday despite measures by U.S. regulators to shore up confidence in the regional banking system following the collapse of Silicon Valley Bank.

Analysts at Raymond James, Compass Point, and Wolfe Research all downgraded First Republic. However JPMorgan reiterated its Overweight rating on the stock, saying this was a buying opportunity for investors.

The entire regional banking sector was under pressure on Monday.

“Here it’s just a question of fear. It’s a question of the classic run on the bank,” Marc Cooper, CEO of Solomon Partners told Yahoo Finance Live. Cooper confirmed he holds funds in First Republic and will keep them there.

“Generally speaking what we’ve learned from the past is they don’t end quickly. These tough times don’t end quickly,” said Cooper.

Charles Schwab (SCHW)

Charles Schwab’s stock rebounded more than 1% in after-hours following a harsh selloff on Monday. The stock fell 11% to close at $51.91 despite assurances from the financial services company that it has plenty of funds. Shares slid as much as 23% during the trading session — its biggest one day drop.

On Monday, Citi analysts defended the stock and upgraded their rating to Buy from Neutral, noting a “compelling” entry point.

“We see near-term revenue/earnings headwinds from rising funding costs and continued client cash sorting, but we believe these are reflected in the current stock price,” wrote analysts Chris Allen and Alessandro Balbo.

Ines is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre

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