United tanks 11% as outlook disappoints

United Continental

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United Continental
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Getty Images/Scott Olson

    Shares of United Continental are down more than 10% on Thursday. The company gave investors a disappointing pre-tax margin forecast.

United Continental shares are under pressure on Thursday, down more than 10%, after the company gave a disappointing profit outlook.

The company beat Wall Street estimates on both the top and bottom lines, earning $2.22 a share on revenue of $9.87 billion, but it was the pre-tax margin forecast of between 3% and 5% for the fourth quarter that caught the attention of both Wall Street analysts and investors alike.

United also said that passenger revenue per available seat mile, a closely watched industry metric, slumped 3.7%, impacted by the hurricanes in the Atlantic. It expects that number to fall an additional 1% to 3% in the fourth quarter.

Shares of United are down more than 18% this year, including Thursday’s drop.

United Continental

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Markets Insider