Shares of United Continental Holdings Inc. tumbled 7.1% in premarket trade Wednesday, as concerns over the outlook for capacity growth offset a fourth-quarter profit and revenue beat. The stock had rallied as much as 3.8% in after-hours trade Tuesday, after United Continental reported fourth-quarter results, then turned sharply lower after the company said in the post-earnings conference call with analysts that it expected capacity growth of 4% to 6% for the next three years. Cowen analyst Helane Becker said she had been expecting 4%-to-6% capacity growth this year, but then a slowing growth rate after that. “The stock is unlikely to reflect the company’s potential in the near term as we anticipate competitive actions and investor concerns regarding overcapacity,” Becker wrote in a note to clients. “We understand the strategy but it might not mean a higher stock value.” The stock has soared 30.2% over the past three months, while the NYSE Arca Airline Index has climbed 11.6% and the S&P 500 has rallied 10.5%.
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