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ALERT COMES AFTER DECLINE IN STOCK EARLY IN THE SESSION AND THEN CLIMBS OVER 5%

Coinbase Global, Inc. COIN today experienced a Power Inflow, a significant event for those who follow where smart money goes and value order flow analytics in their trading decisions. 

Today, at 11:10 AM on October 15th, a significant trading signal occurred for Coinbase Global, Inc. as it demonstrated a Power Inflow at a price of $191.58. This indicator is crucial for traders who want to know directionally where institutions and so-called “smart money” moves in the market. They see the value of utilizing order flow analytics to guide their trading decisions. The Power Inflow points to a possible uptrend in Coinbase Global’s stock, marking a potential entry point for traders looking to capitalize on the expected upward movement. Traders with this signal closely watch for sustained momentum in Amazon’s stock price, interpreting this event as a bullish sign.

Signal description

Order flow analytics, aka transaction or market flow analysis, separate and study both the retail and institutional volume rate of orders (flow). It involves analyzing the flow of buy and sell orders, along with size, timing, and other associated characteristics and patterns, to gain insights and make more informed trading decisions. Active traders interpret this particular indicator as a bullish signal. 

The Power Inflow occurs within the first two hours of the market open and generally signals the trend that helps gauge the stock’s overall direction, powered by institutional activity in the stock, for the remainder of the day. 

By incorporating order flow analytics into their trading strategies, market participants can better interpret market conditions, identify trading opportunities, and potentially improve their trading performance. But let’s not forget that while watching smart money flow can provide valuable insights, it is crucial to incorporate effective risk management strategies to protect capital and mitigate potential losses. Employing a consistent and effective risk management plan helps traders navigate the uncertainties of the market in a more controlled and calculated manner, increasing the likelihood of long-term success

If you want to stay updated on the latest options trades for Coin, Benzinga Pro gives you real-time options trades alerts. 
Market News and Data brought to you by Benzinga APIs and include firms, like Finit USA, responsible for parts of the data within this article. 

After Market Close UPDATE:

The price at the time of the Power Inflow was $191.58. The returns on the High price (201.12) and Close price ($196.37) after the Power Inflow were respectively 5.3% and 2.5%. That is why it is important to have a trading plan that includes Profit Targets and Stop Losses that reflect your risk appetite.

Past Performance is Not Indicative of Future Results

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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Walgreens Boots Alliance (WBA) announced more store closures Tuesday, as the retail pharmacy giant continues to face pressure from the growth of online prescription delivery platforms and ongoing retail constraints.

Walgreens will close 500 stores next year, toward the end of the year, and reach a total of 1,200 store closings in the next three years, according to company executives on a fourth quarter earnings call today.

The number had not been previously announced, but Walgreens indicated up to 2,000 store closures coming during an earnings call in June. Walgreens stock jumped more than 12% in trading Tuesday on the news — signaling the move was no surprise, and even welcome, to investors.

The company announced fiscal fourth quarter earnings in line with expectations, with a loss per share of $3.48 compared to $0.21 in the same quarter in 2024. Revenues, meanwhile, increased 6% year over year to $37.5 billion.

Mary Langowski, president of US healthcare at the company, said the moves made to date have focused on near-term shareholder value. For fiscal year 2025, the company will focus on the growth of core lines of business, including the pharmacies and specialty pharmacy services.

CEO Tim Wentworth said during the earnings call Tuesday that when he took the top spot last year, he was focused on ensuring the struggling retailer takes steps to cut expenses and has since successfully reduced net debt by $1.9 billion.

But there is still more work to be done. “Building on this momentum is critical as we turn our executional focus to stabilizing our core economics,” Wentworth said.

The store closures, or “footprint optimization” strategy, is focused on what Wentworth has called “re-orienting” the company as a retail pharmacy. Wentworth said he doesn’t expect further cuts in the 300,000-member workforce, which is already strained.

“We don’t have a ton of de-staffing left in the stores … our stores are tight. That’s not where you will see us making a difference,” he said.

More closures expected

The move to close stores is just part of the first phase, along with VillageMD closures announced earlier this year, of a “right-sizing” process for the company.

“While the decision to close the store is never an easy one, we feel confident in our ability to continue to serve our customers,” Wentworth said, adding that affected employees would be redeployed to other locations.

Walgreens is working with patients to ensure the prescription fills are not interrupted, including through home delivery if they are not close enough to another location. But the company isn’t including that as part of its future modeling for the business — indicating it is unsure what the fallout will be. But the stores that are closing have low volume and are making very little money, executives said on the call Tuesday.

Story continues

“We are prioritizing closing locations that are cash flow negative, underperforming stores where we own the locations, and ones where the lease expirations are coming due in the next few years,” said CFO Manmohan Mahajan.

He added that based on the previously disclosed 2,000 store target, another 800 stores are being evaluated for closure.

Wentworth said that the shake-up of the retailer isn’t over. “We are in the early stages of a turnaround that will take time. The fiscal fourth quarter was an important building block in the foundation of this turnaround, and we expect further progress in fiscal 2025,” Wentworth said.

Battling PBM reimbursements

In addition to the store closures, Wentworth also said the company has been aggressively pursuing fairer reimbursement for prescriptions by pharmacy benefit managers (PBMs). The issue of reimbursements has been impacting pharmacies large and small in recent years.

“Today, we have a high level of visibility into reimbursement for approximately 80% of the anticipated script volume in fiscal 2025. We are pleased with the willingness that some of our PBM partners have shown to consider current trends and adjust reimbursement,” Wentworth said.

He said the company has been engaged in tough negotiations with PBMs and ensured that all sales to patients — no matter how they pay — aren’t a loss to the company.

“We’re willing to walk away from a line of business if it doesn’t make sense. I’ve said that … we would rather have 5% of the cash-paying cadre than 100% of a reimbursed contract,” Wentworth said.

There are still more contracts that are under negotiation, but Wentworth said that the current state of contracts is “right where I would expect us to be” to ensure stronger revenues for the upcoming fiscal year.

Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee on most social media platforms @AnjKhem.

Click here for in-depth analysis of the latest health industry news and events impacting stock prices

In August 1997, Apple was on the edge of collapse. Its finances were in shambles and the tech giant that once stood at the forefront of innovation was nearing bankruptcy.

Enter Bill Gates, co-founder of Microsoft, Apple’s longtime rival, who unexpectedly became the story’s hero. Gates stepped in with a $150 million investment, a move that saved Apple and became one of the most talked-about moments in tech history.

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“Apple was in very serious trouble,” Steve Jobs admitted at the 2007 D5 tech conference alongside Gates. At the time, Jobs had just returned to Apple and found the company desperately needing help. His willingness to reach out to Gates – someone who had been a fierce competitor – marked a turning point for the company. As Jobs explained during the conference, “Apple was very weak and so I called Bill up and we tried to patch things up.”

Microsoft’s investment was more than just financial support; it represented a shift in mindset. According to Jobs, “Apple didn’t have to beat Microsoft. Apple had to remember who Apple was because they’d forgotten who Apple was.” This mentality allowed both companies to coexist, with Microsoft becoming the largest software developer for Apple’s Mac platform.

Trending: This Adobe-backed AI marketing startup went from a $5 to $85 million valuation working with brands like L’Oréal, Hasbro, and Sweetgreen in just three years – here’s how there’s an opportunity to invest at $1,000 for only $0.50/share today.

When Jobs announced the deal at the 1997 MacWorld conference, Gates made an appearance via satellite to a chorus of boos from the audience. But for both companies, it was a win. Microsoft gained a business opportunity, while Apple got the boost it needed to stay afloat. Reflecting on the investment a decade later, Gates said, “That’s worked out very well.”

In an iconic moment, Steve Jobs publicly thanked Gates for his help, telling him, “Bill, thank you. The world’s a better place.” This gratitude was even immortalized on the cover of Time Magazine, a symbol of the profound impact this partnership had on the tech world.

Trending: ‘Scrolling to UBI’: Deloitte’s #1 fastest-growing software company allows users to earn money on their phones – invest today with $1,000 for just $0.25/share

Despite a very public rivalry, the investment marked a turning point for Apple and the personal relationship between Gates and Jobs.

Story continues

In a 60 Minutes interview with Charlie Rose, Gates recalled visiting Jobs on his deathbed and grew emotional. Reflecting on their relationship, Gates explained: “He and I, in a sense, grew up together. We were within a year of the same age and we were kind of naively optimistic and built big companies. And every fantasy we had about creating products and learning new things – we achieved all of it. And most of it as rivals. But we always retained a certain respect and communication, including even when he was sick.”

Though the deal raised some eyebrows, it wasn’t the end of competition between Apple and Microsoft. Both companies continued to thrive, shaping the tech industry’s future together.

Their collaboration was a powerful reminder that rivals can find common ground, even in the most unexpected circumstances.

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This article Bill Gates Saved ‘Rival’ Apple From Bankruptcy By Investing $150 Million – Steve Jobs Thanked Him Publicly: ‘The World’s A Better Place’ originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Announces $1.5 billion share repurchase program

Year-to-date generated $7.2 billion of operating cash flow and $3.4 billion free cash flow

Company sees revenue trends improve as industry reached an inflection point in the quarter

CHICAGO, Oct. 15, 2024 /PRNewswire/ — United Airlines (UAL) today reported third-quarter 2024 financial results. The company had pre-tax earnings of $1.3 billion, with a pre-tax margin of 8.7%; adjusted pre-tax earnings¹ of $1.4 billion, with an adjusted pre-tax margin¹ of 9.7%. The company also achieved diluted earnings per share of $2.90; adjusted diluted earnings per share¹ of $3.33, ahead of the third-quarter 2024 guidance provided at the start of the quarter of $2.75 to $3.25.

The company produced strong financial and operational results in the quarter. As the company expected, revenue trends improved as the industry reached an inflection point in the quarter with unprofitable capacity exiting the market. Domestic unit revenue was positive year-over-year in August and September. Demand continues to be strong for the United product: Corporate revenues were up 13% year over year in September, and in the quarter premium revenues continued to remain resilient and were up 5% year over year and revenue from Basic Economy was up 20% year over year.

“I appreciate the entire United team coming together to take care of our customers by operating a safe and on-time airline this summer,” said United Airlines CEO Scott Kirby. “As predicted, unproductive capacity left the market in mid-August, and we saw a clear inflection point in our revenue trends that propelled United to exceed Q3 expectations. A prosperous summer 2024 is just the beginning as our improved customer experience combined with United Next positions the airline at the top of the industry for the foreseeable future.” 

Capital Allocation

The company’s Board of Directors authorized a new share repurchase program for up to $1.5 billion of outstanding shares of common stock and warrants originally issued to the U.S. Treasury under the CARES Act and Payroll Support Program, subject to a limit of $500 million in aggregate through year-end 2024. This amount represents approximately 7% percent of the company’s market capitalization based on the closing stock price on Oct 14, 2024. This is the first share repurchase program since the suspension of the previous program in 2020 due to the COVID-19 pandemic. Unless suspended or terminated earlier by our Board of Directors, this program has no set expiration date and will therefore terminate when the company has completed all purchases authorized under the program.

“In the last four years, we’ve invested $22 billion in our product and nearly $10 billion in our people. Those investments have enabled higher profits and are now contributing to growing free cash flow,” said United Airlines CFO Michael Leskinen. “We’re now in a position to add a share repurchase program as we continue to invest in and deleverage our business. We are simultaneously targeting net leverage² below 2x in the next few years. We intend this buyback to be the beginning of a consistent and disciplined return of capital that is paced by our ability to generate increasing levels of free cash.”

In the quarter, the company repurchased in the open market just over 2 million shares of UAL common stock in connection with the exercise of roughly 6.4 million warrants issued to the U.S. Treasury under the CARES Act and Payroll Support Program. The repurchase of these shares eliminated the dilution associated with the warrants exercised and are separate from the $1.5 billion share repurchase program above. The shares were purchased at an average price of $39.99.

Under today’s $1.5 billion share repurchase program shares may be repurchased in the open market and in privately negotiated transactions, as well as accelerated repurchase agreements, depending on the capital needs of the business, the market price of UAL common stock, general market conditions, securities law limitations and other factors.

Third-Quarter Financial Results

• Capacity up 4.1% compared to third-quarter 2023.
• Total operating revenue of $14.8 billion, up 2.5% compared to third-quarter 2023.
• TRASM down 1.6% compared to third-quarter 2023.
• CASM up 0.1%, and CASM-ex¹ up 6.5%, compared to third-quarter 2023.
• Pre-tax earnings of $1.3 billion, with a pre-tax margin of 8.7%; adjusted pre-tax earnings¹ of $1.4 billion, with an adjusted pre-tax margin¹ of 9.7%.
• Net income of $1.0 billion; adjusted net income¹ of $1.1 billion.
• Diluted earnings per share of $2.90; adjusted diluted earnings per share¹ of $3.33.
• Average fuel price per gallon of $2.56.
• Ending available liquidity[3] of $17.1 billion.
• Total debt and finance lease obligations of $25.7 billion at quarter end.
• Voluntarily pre-paid the remaining $1.8 billion outstanding balance of the MileagePlus term loan with an interest rate near 11%.
• Net leverage¹ of 2.7x.

Key Highlights

• United announced an industry-leading agreement with SpaceX to bring Starlink’s Wi-Fi service to more than 1,000 of the airline’s mainline and regional aircraft, providing customers free, fast, reliable internet connectivity on passenger flights as soon as late 2025.
• Last week, United announced the largest international expansion in the airline’s history, bringing service to eight new Atlantic and Pacific destinations in summer 2025 (Ulaanbaatar, Mongolia; Faro, Portugal; Palermo, Italy; Dakar, Senegal; Bilbao, Spain; Madeira Island, Portugal; Nuuk, Greenland; and Kaohsiung, Taiwan). United will serve more international destinations across the Atlantic and Pacific than all other U.S. carriers combined with 800 daily flights to and from 147 international destinations, including nearly 40 not served by any other U.S. airline.
• Increased third quarter customer satisfaction ratings by 5.4 points year over year as measured by the Net Promoter Score scale, with improvements to important touchpoints like baggage, inflight entertainment and food and beverage.
• Ranked first in on time departure and second in on time arrival amongst major U.S. airlines for the third quarter, with the best on time departure in the months of August and September.
• United became the first airline to purchase sustainable aviation fuel (SAF) at Chicago O’Hare International Airport.
• United signed an agreement with SkyWest to begin operating the CRJ550 as part of the United Express portfolio, with 11 initial aircraft to start entering the fleet in December of this year and opportunity for more in the future.

Customer Experience

• Saw a 5.8% increase in customer check-in satisfaction, a 6.5% increase in customer checking in digitally and 9% increase in customer bypassing the lobby for the third quarter year over year thanks to check-in process improvements like introducing Spanish translations within features of the United app, enhancing digital check-in options for basic economy and expanding curbside bag drop-off outside airports.
• Opened the newly updated South Terminal lobby at Miami International Airport, featuring 10 new ticket counters, additional self-serve kiosks and other time-saving app features like bag drop shortcut and updated signage.
• Nearly half (49%) of passengers whose trips were cancelled were rebooked through United’s automated service or through self-service in the third quarter, an increase in five points year over year.
• Enhanced customers’ culinary experience with the introduction of the airline’s new domestic economy cabin wine list, which includes canned wine from two women-owned companies and expanded choice for customers with new rose and brut options.
• With Live Activities on Apple Watch, customers can now access important flight information right from their wrist without opening the United app.
• Unveiled improvements to United’s digital offerings by introducing digital food menus for all flights and cabins within the United app and transitioning Hemispheres® magazine to an all-access digital experience on United.com.
• Opened the Reset Suite by Therabody at Chicago O’Hare, a luxury wellness lounge for customers to relax prior to their flight.

Operations

• Operated the busiest third quarter as measured by revenue passenger volumes in company history, setting the record for the most ever passengers carried for the July 4 and Labor Day holidays and for the highest number of customers carried in a day at 552,000 in July.
• Set the company record for the highest daily customer average in a month of September with 474,000 carried.
• United finished the quarter with the best on time departure amongst major U.S. airlines in six of seven of United’s U.S. hub locations, making it the 30th quarter in a row leading on time departure at United’s Chicago O’Hare hub and 10th in a row leading United’s Denver hub.
• In September, the airline achieved its highest completion rate year to date.

Network

• United operated its largest domestic U.S. and Canada third quarter schedule in company history, an increase of 5.2% and 18.5% of flights year over year, respectively.
• In the third quarter, United operated the largest schedule to Europe in United’s history, including the largest-ever United schedules to popular Southern Europe tourist destinations such as Portugal, Spain, Italy, and Greece.
• The carrier announced its first-ever nonstop flight between its New York/Newark hub and Dominica, to begin service in February subject to government approval.
• United added or increased service across 145 flights to help customers reach major special events like the Republican and Democratic National Conventions, college football games across the country, and Chicago Bears away games, including adding flights for fans to support the team for their international game in London.
• United launched or reinstated routes from Washington, D.C. to Greenville, S.C.; San Francisco to Detroit, Mich.; and St. Louis, Mo., and added an additional route from San Francisco to Montréal.
• With reinstated service between Los Angeles and Shanghai in the third quarter, United continues to operate the largest mainland China network of any carrier and is the only U.S. carrier to serve mainland China from Los Angeles.

Awards

• United was recognized for the ninth year in a row as a “Best Place to Work for Disability Inclusion” by Disability Equality Index.
• Executive Vice President and Chief Communication Officer Josh Earnest was named to PR Week’s Power List for the fourth year in a row in recognition of his influential industry leadership.
• Linda Jojo, United’s Chief Customer Officer, was reappointed to the Federal Aviation Administration’s Management Advisory Council for a second term, serving as the Chair.
• United’s Digital Technology team won the Digital Leadership Award from the Flight Global Airline Strategy Awards for their innovation and excellence in the market.
• Business Travel News Europe awarded the airline the 2024 Technology Innovation and Traveler Experience award for the United app’s improvements to customer experience.

Employees and Communities

• In partnership with United’s Eco-Skies Alliance, United partnered with the San Francisco 49ers to become the first NFL team to purchase sustainable aviation fuel.
• In the third quarter, United saw a nearly 50% growth in employee volunteerism year to date, with nearly 4,000 United employees volunteering more than 16,000 hours, 11,000 hours of which were logged in United’s annual month-long volunteer campaign September of Service to honor those affected by 9/11.
• Announced a new sponsorship with the Washington Capitals, Mystics and Wizards as the three teams’ official airline and a founding partner of the Monumental Sports & Entertainment’s Capitol One Arena transformation, giving MileagePlus customers access to exclusive experiences.
• For the second year in a row, United donated $1.25 million through the education nonprofit DonorsChoose to support aviation and STEM classroom projects in historically underfunded schools across United’s domestic hub communities.
• United and Airlink mobilized 335 responders for 14 emergencies, humanitarian crises and recovery and preparedness initiatives globally, and United shipped 17 million tons of aid cargo to support relief efforts.
• Members of United’s Black Business Resource Group Beacon participated in Chicago’s Bud Billiken Parade, with United awarding a $2,500 scholarship to Emory University.
• United hosted more than 850 girls at 35 different airports across their system to celebrate the 10th anniversary of Girls in Aviation Day, recognizing the achievements of women in aviation and inspiring the next generation of aviators.

Earnings Call

UAL will hold a conference call to discuss third-quarter financial results, as well as its financial and operational outlook for the fourth-quarter 2024 and beyond, on Wednesday, October 16, at 9:30 a.m. CDT/10:30 a.m. EDT. A live, listen-only webcast of the conference call will be available at ir.united.com. The webcast will be available for replay within 24 hours of the conference call and then archived on the website.

Outlook

This press release should be read in conjunction with the company’s Investor Update issued in connection with this quarterly earnings announcement, which provides additional information on the company’s business outlook (including certain financial and operational guidance) and is furnished with this press release to the U.S. Securities and Exchange Commission on a Current Report on Form 8-K. The Investor Update is also available at ir.united.com. Management will also discuss certain business outlook items, including providing certain full year 2024 financial targets, during the quarterly earnings conference call.

The company’s business outlook is subject to risks and uncertainties applicable to all forward-looking statements as described elsewhere in this press release. Please see the section entitled “Cautionary Statement Regarding Forward-Looking Statements.”

About United

At United, Good Leads The Way. With hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers, and is now the largest airline in the world. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol “UAL”.

Website Information

We routinely post important news and information regarding United on our corporate website, www.united.com, and our investor relations website, ir.united.com. We use our investor relations website as a primary channel for disclosing key information to our investors, including the timing of future investor conferences and earnings calls, press releases and other information about financial performance, reports filed or furnished with the U.S. Securities and Exchange Commission, information on corporate governance and details related to our annual meeting of shareholders. We may use our investor relations website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. We may also use social media channels to communicate with our investors and the public about our company and other matters, and those communications could be deemed to be material information. The information contained on, or that may be accessed through, our website or social media channels are not incorporated by reference into, and are not a part of, this document.

Cautionary Statement Regarding Forward-Looking Statements:
This press release and the related attachments and Investor Update (as well as the oral statements made with respect to information contained in this release and the attachments) contain certain “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, relating to, among other things, goals, plans and projections regarding the company’s financial position, results of operations, market position, capacity, fleet plan strategy, announced routes (which may be subject to government approval), product development, ESG-related strategy initiatives and business strategy. Such forward-looking statements are based on historical performance and current expectations, estimates, forecasts and projections about the company’s future financial results, goals, plans, commitments, strategies and objectives and involve inherent risks, assumptions and uncertainties, known or unknown, including internal or external factors that could delay, divert or change any of them, that are difficult to predict, may be beyond the company’s control and could cause the company’s future financial results, goals, plans, commitments, strategies and objectives to differ materially from those expressed in, or implied by, the statements. Words such as “should,” “could,” “would,” “will,” “may,” “expects,” “plans,” “intends,” “anticipates,” “indicates,” “remains,” “believes,” “estimates,” “projects,” “forecast,” “guidance,” “outlook,” “goals,” “targets,” “pledge,” “confident,” “optimistic,” “dedicated,” “positioned,” “on track” and other words and terms of similar meaning and expression are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. All statements, other than those that relate solely to historical facts, are forward-looking statements.

Additionally, forward-looking statements include conditional statements and statements that identify uncertainties or trends, discuss the possible future effects of known trends or uncertainties, or that indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law or regulation.

Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: execution risks associated with our strategic operating plan; changes in our fleet and network strategy or other factors outside our control resulting in less economic aircraft orders, costs related to modification or termination of aircraft orders or entry into aircraft orders on less favorable terms, as well as any inability to accept or integrate new aircraft into our fleet as planned, including as a result of any mandatory groundings of aircraft; any failure to effectively manage, and receive anticipated benefits and returns from, acquisitions, divestitures, investments, joint ventures and other portfolio actions, or related exposures to unknown liabilities or other issues or underperformance as compared to our expectations; adverse publicity, harm to our brand, reduced travel demand, potential tort liability and operational restrictions as a result of an accident, catastrophe or incident involving us, our regional carriers, our codeshare partners or another airline; the highly competitive nature of the global airline industry and susceptibility of the industry to price discounting and changes in capacity, including as a result of alliances, joint business arrangements or other consolidations; our reliance on a limited number of suppliers to source a majority of our aircraft, engines and certain parts, and the impact of any failure to obtain timely deliveries, additional equipment or support from any of these suppliers; disruptions to our regional network and United Express flights provided by third-party regional carriers; unfavorable economic and political conditions in the United States and globally; reliance on third-party service providers and the impact of any significant failure of these parties to perform as expected, or interruptions in our relationships with these providers or their provision of services; extended interruptions or disruptions in service at major airports where we operate and space, facility and infrastructure constraints at our hubs or other airports; geopolitical conflict, terrorist attacks or security events (including the suspension of our overflying in Russian airspace as a result of the Russia–Ukraine military conflict and interruptions of our flying as a result of the military conflict in the Middle East, as well as any escalation of the broader economic consequences of these conflicts beyond their current scope); any damage to our reputation or brand image; our reliance on technology and automated systems to operate our business and the impact of any significant failure or disruption of, or failure to effectively integrate and implement, these technologies or systems; increasing privacy, data security and cybersecurity obligations or a significant data breach; increased use of social media platforms by us, our employees and others; the impacts of union disputes, employee strikes or slowdowns, and other labor-related disruptions or regulatory compliance costs on our operations or financial performance; any failure to attract, train or retain skilled personnel, including our senior management team or other key employees; the monetary and operational costs of compliance with extensive government regulation of the airline industry; current or future litigation and regulatory actions, or failure to comply with the terms of any settlement, order or agreement relating to these actions; costs, liabilities and risks associated with environmental regulation and climate change, and any failure to achieve or demonstrate progress towards our climate goals; high and/or volatile fuel prices or significant disruptions in the supply of aircraft fuel; the impacts of our significant amount of financial leverage from fixed obligations and the impacts of insufficient liquidity on our financial condition and business; failure to comply with financial and other covenants governing our debt, including our MileagePlus financing agreements; limitations on our ability to use our net operating loss carryforwards and certain other tax attributes to offset future taxable income for U.S. federal income tax purposes; our failure to realize the full value of our intangible assets or our long-lived assets, causing us to record impairments; fluctuations in the price of our common stock; the impacts of seasonality, and other factors associated with the airline industry; increases in insurance costs or inadequate insurance coverage; risks relating to our repurchase program for shares of common stock and certain warrants exercisable for common stock;  and other risks and uncertainties set forth in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and under “Economic and Market Factors” and “Governmental Actions” in Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.

Non-GAAP Financial Information:
In discussing financial results and guidance, the company refers to financial measures that are not in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). The non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP and are presented because management believes that they supplement or enhance management’s, analysts’ and investors’ overall understanding of the company’s underlying financial performance and trends and facilitate comparisons among current, past and future periods. Non-GAAP financial measures such as CASM-ex (which excludes the impact of fuel expense, profit sharing, special charges and third-party expenses), adjusted pre-tax margin (which is calculated as pre-tax margin excluding operating and nonoperating special charges, unrealized (gains) losses on investments, net and debt extinguishment and modification fees), adjusted pre-tax income, adjusted earnings per share, adjusted net income, and net leverage typically have exclusions or adjustments that include one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of past or future operating results. These items are excluded because the company believes they neither relate to the ordinary course of the company’s business nor reflect the company’s underlying business performance.

Because the non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related GAAP financial measures presented in the press release and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in method and in the items being adjusted. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

Please refer to the tables accompanying this release for a description of the non-GAAP adjustments and reconciliations of the historical non-GAAP financial measures used to the most comparable GAAP financial measure and related disclosures.

-tables attached-

UNITED AIRLINES HOLDINGS, INC.

¹ NON-GAAP FINANCIAL INFORMATION

UAL evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America (GAAP) and non-GAAP financial measures, including adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), adjusted EBITDA margin, adjusted EBITDA excluding aircraft rent (adjusted EBITDAR), adjusted operating income (loss), adjusted operating margin, adjusted pre-tax income (loss), adjusted pre-tax margin, adjusted net income (loss), adjusted diluted earnings (loss) per share, CASM-ex, adjusted capital expenditures, adjusted total debt, adjusted net debt, net leverage, free cash flow, and free cash flow, net of financings, among others. The non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP and are presented because management believes that they supplement or enhance management’s, analysts’ and investors’ overall understanding of the company’s underlying financial performance and trends and facilitate comparisons among current, past and future periods.

Because the non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related GAAP financial measures presented in the press release and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in method and in the items being adjusted. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

The company does not provide a reconciliation of forward-looking measures where the company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and is unable to reasonably predict certain items contained in the GAAP measures without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the company’s control or cannot be reasonably predicted. For the same reasons, the company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. See “Cautionary Statement Regarding Forward-Looking Statements” above. The information below provides an explanation of certain adjustments reflected in the non-GAAP financial measures and shows a reconciliation of non-GAAP financial measures reported in this press release to the most directly comparable GAAP financial measures. Within the financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying amounts.

CASM: CASM is a common metric used in the airline industry to measure an airline’s cost structure and efficiency. UAL reports CASM excluding special charges, third-party business expenses, fuel expense, and profit sharing. UAL believes that adjusting for special charges is useful to investors because those items are not indicative of UAL’s ongoing performance. UAL also believes that excluding third-party business expenses, such as maintenance, flight academy, ground handling and catering services for third parties, provides more meaningful disclosure because these expenses are not directly related to UAL’s core business. UAL also believes that excluding fuel expense from certain measures is useful to investors because it provides an additional measure of management’s performance excluding the effects of a significant cost item over which management has limited influence. UAL excludes profit sharing because it believes that this exclusion allows investors to better understand and analyze UAL’s operating cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.

Adjusted EBITDA and EBITDAR: UAL also reports EBITDA and EBITDAR excluding special charges, nonoperating unrealized (gains) losses on investments, net and nonoperating debt extinguishment and modification fees. UAL believes that adjusting for these items is useful to investors because they are not indicative of UAL’s ongoing performance.

Adjusted Capital Expenditures and Free Cash Flow: UAL believes that adjusting capital expenditures for assets acquired through the issuance of debt, finance leases and other financial liabilities is useful to investors in order to appropriately reflect the total amounts spent on capital expenditures. UAL also believes that adjusting net cash provided by (used in) operating activities for capital expenditures, net of flight equipment purchase deposit returns, adjusted capital expenditures, and aircraft operating lease additions is useful to allow investors to evaluate the company’s ability to generate cash that is available for debt service or general corporate initiatives.

Adjusted Total Debt and Adjusted Net Debt: Adjusted total debt is a non-GAAP financial measure that includes current and long-term debt, operating lease obligations and finance lease obligations, current and noncurrent other financial liabilities and noncurrent pension and postretirement obligations. Adjusted net debt is adjusted total debt minus cash, cash equivalents and short-term investments. UAL provides adjusted total debt and adjusted net debt because we believe these measures provide useful supplemental information for assessing the company’s debt and debt-like obligation profile. 

Net Leverage: Net leverage is a non-GAAP financial measure that is equal to adjusted net debt divided by trailing twelve month adjusted EBITDAR. UAL provides net leverage because we believe it provides useful supplemental information for assessing the company’s debt level.

(Gains) losses on sale of assets and other special charges: During the three and nine months ended September 30, 2024, the company recorded $5 million of gains and $44 million of charges, respectively. The charges included a write down to fair market value for assets held for sale, losses on the disposal of assets, a settlement related to a certain pilot long term disability plan, accelerated depreciation on assets with shortened lives and write-off of certain international slots no longer in use, which were partially offset by a gain from a favorable outcome related to a certain contract dispute as well as gains on sales of assets.

During the three and nine months ended September 30, 2023, the company recorded $28 million and $88 million, respectively, of net charges primarily comprised of reserves for various legal matters, accelerated depreciation related to certain of the company’s assets that were retired early, an impairment of flight training equipment that was sold and other gains and losses on the sale of assets.

Labor contract ratification bonuses. During the nine months ended September 30, 2023, the company recorded $814 million of expense related to agreements with its employees represented by the Air Line Pilots Association and the International Association of Machinists & Aerospace Workers  and other work groups.

Nonoperating unrealized (gains) losses on investments, net: All amounts represent changes to the market value of equity investments.

Nonoperating debt extinguishment and modification fees:  During the three and nine months ended September 30, 2024, the company recorded $75 million of charges related to the prepayment in full the outstanding principal balance of the term loan facility of the MileagePlus Financing in July 2024. During the nine months ended September 30, 2024, the company also recorded charges of $35 million relating to the refinancing of its 2021 term loans in February 2024.

During the nine months ended September 30, 2023, the company recorded $11 million of charges primarily related to the prepayment of $1.0 billion of the outstanding principal amount under a 2021 term loan facility.

Effective tax rate:

The company’s effective tax rates were as follows:

The provision for income taxes is based on the estimated annual effective tax rate, which represents a blend of federal, state and foreign taxes and includes the impact of certain nondeductible items.

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SOURCE United Airlines

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Apple (AAPL) stock hit a new intraday high of $237.49 on Tuesday, eclipsing its prior record of $237.23 on July 15. The stock’s climb added about $70 billion to its market capitalization, putting it further ahead of Nvidia (NVDA) as the world’s most valuable company after Nvidia’s gains jeopardized the iPhone maker’s lead.

The stock pared gains after notching the record, gaining about 1.5% in afternoon trading. Meanwhile, Nvidia fell around 4%.

Apple’s upward move comes a day after preliminary data showed rising demand for iPhones in the third quarter. Global iPhone shipments rose 3.5% from last year, according to the International Data Corporation (IDC).

“While the growth of the Chinese players in emerging markets has been an ongoing theme this year, Apple also enjoyed a 3.5% YoY growth in shipments this quarter fueled by strong demand from the previous models and the launch of the new iPhone 16 lineup,” said Nabila Popal, IDC’s data & analytics senior director, in a statement Monday.

“Despite the staggered rollout of Apple Intelligence in markets outside the U.S., Apple will continue to grow in the upcoming holiday season,” she added.

Apple released its new iPad mini, which is equipped to run its suite of AI features, on Tuesday.

Apple is set to report earnings Oct. 31, and Wall Street analysts tracked by Bloomberg expect earnings to rise 9% from last year to $1.59 per share. Some 40 analysts recommend buying the stock, while 19 have a Hold rating and two recommend selling shares, according to Bloomberg data. Apple shares are up 32% from last year, and analysts see the stock rising further to over $245 over the next 12 months, Bloomberg data shows.

Most investors know that Berkshire Hathaway (NYSE: BRK. A)(NYSE: BRK.B) has been one of the best-performing investments of all time. Its key to success has been to invest consistently, holding for years or even decades at a time.

But Berkshire’s run is far from over. And right now, there are two exciting reasons nearly every investor should consider jumping into this legendary stock.

1. Berkshire has a permanent competitive advantage

Warren Buffett acquired Berkshire Hathaway back in 1965. Over the first few decades of operation, the company soared in value. In the 1980s, for example, Berkshire stock rose in value by at least 30% most years, with annual returns reaching as high as 90%.

Even though Berkshire’s biggest days of growth are behind it, the shares have still performed quite well over more recent decades. During the past 30 years, for instance, Berkshire’s total return has greatly outperformed that of the S&P 500 index. Even over just the past three years, Berkshire stock has risen by roughly 60%, besting the S&P 500’s return of just 38% over the same time period.

BRK. B Total Return Level data by YCharts

What has allowed Berkshire stock to beat the market again and again, even as its valuation has soared to nearly $1 trillion? The biggest key has been Buffett’s investing prowess. Buffett and his investing team have repeatedly invested shareholder capital successfully, whether by buying shares of a publicly traded company, acquiring a private company, or simply buying back Berkshire’s own stock.

But there’s another advantage that Berkshire has that few other investments offer: the advantage of permanent capital. That is, Berkshire has a pool of capital that it can invest regardless of market conditions. During the 2008 financial crisis, for example, it was able to spend billions of dollars on blue chip companies at discounts simple because so many other competing pools of capital had already dried up.

This permanent capital is generated by Berkshire’s insurance businesses — an industry that doesn’t necessarily see demand plummet during recessions or bear markets. While underwriting profits may not be very high during certain market cycles, insurers provide a steady stream of investable cash because premiums are paid up front while claims are paid out after the fact. Many other investment vehicles have copied this business model in recent years, but it has remained a durable competitive advantage for Berkshire, especially when paired with Buffett’s investment acumen.

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2. Berkshire makes saving money fun

Diverting more cash that could be used for lifestyle expenses into your investment account is not always fun, but it’s a wise long-term decision. Investing in Berkshire can eliminate some of the friction involved in upping your savings rate.

First, every time you buy more Berkshire stock, you know you’re betting on one of the most successful investment vehicles in history. Putting more money to work in the market is significantly more fun when you have the confidence that these investments will match or even outpace the overall market’s returns.

Second, by buying shares of Berkshire, you become a partner in one of America’s most iconic businesses. You quite literally become an investing partner with Buffett and the rest of this team. Whenever they make a move, so are you. Except in this case, they’re doing all of the groundwork for you, while you sit back and enjoy life. If they see opportunities in a certain industry or region of the world, Buffett and company are empowered to invest your money where it has the best chance of growing. Whereas with other investments, your capital may be limited to a certain industry or geography.

In a nutshell, investing in Berkshire can be more fun than nearly any other investment vehicle. Who wouldn’t want to be investment partners with Warren Buffett? And any trick you can use to up your savings rate is nearly as important as choosing the right investment. With Berkshire, you can accomplish both, making it an attractive choice for nearly every investor.

Should you invest $1,000 in Berkshire Hathaway right now?

Before you buy stock in Berkshire Hathaway, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

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Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.

2 Reasons to Buy Berkshire Hathaway Stock Like There’s No Tomorrow was originally published by The Motley Fool

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