United CEO Mishandles Earnings Call, Stock Price Tumbles 12%
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Don’t you hate it when you have a bad day at work, causing your company’s stock to lose $2.5 billion in value? Well, United CEO Oscar Munoz feels your pain.
Thursday morning, the airline had its quarterly earnings call, and Munoz and the rest of the management team bungled at least one question from an analyst. When pressed for details about how United plans to compete with low-fare carriers, Munoz said the airline had “dug ourselves in a hole” and asked for patience.
However, institutional investors — which hold around 99% of United’s shares — aren’t known for having patience. The blowback was quick with headlines calling the earnings call “disastrous” and Stifel stock analyst Joseph DeNardi headlining his report “Is This a Catalyst for Management Change?”
This wouldn’t be Oscar Munoz’s first time in the crosshairs. After he botched the initial response to April’s Dr. Dao incident, there were calls for him to step down. While the security officers involved in the situation were fired this week, no one at United would be fired for the incident.
And the stock price tumbled. As of the close of Thursday’s trading session, United stock lost 12.08% to finish at $59.78 per share. This loss takes $2.5 billion from the airline’s market valuation. This leaves United as the fourth most-valuable US airline behind Delta, American Airlines and Southwest — which all posted small losses (1.12%, 1.00% and 0.34%, respectively) on the day.
The loss furthers the drop for a company that is having trouble inspiring confidence in investors. Since June 2nd, United stock has lost over 27%. In the same time, American Airlines has gained 4% and Delta’s stock is up 2.1%.
Featured image by Antonio Perez/Chicago Tribune/TNS via Getty Images
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,650
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
- Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.