Delta Reports Mixed Earnings

Delta Airlines, Inc. (Ticker Symbol: DAL) reported earnings before the opening bell that were better than analysts were expecting.  The major U.S. airline reported an earnings per share beat of $2.32 vs. Wall Street analysts’ expectations of $2.26 per share.  However, Delta reported a slight revenue miss of $12.56 billion vs. Wall Street analysts’ expectations of $12.62 billion. The company stated that they benefited this quarter from strong travel demand mainly from high-paying passengers, which helped boost earnings for the quarter.

The airline also gave an update on its guidance for the next quarter. Delta now expects next quarter earnings per share to come in a wide-range of $1.20-$1.50.  Wall Street analysts’ are looking for Delta to release next quarter earnings per share of $1.51. Delta is looking for its costs excluding fuel to rise by nearly 5% in the next quarter. Additionally, at the beginning of October 2019, Delta increased wages for ground staff and flight attendants by 4%.

Delta Airlines, Inc. (Ticker Symbol: DAL) reported earnings before the opening bell that were better than analysts were expecting.  The major U.S. airline reported an earnings per share beat of $2.32 vs. Wall Street analysts’ expectations of $2.26 per share.  However, Delta reported a slight revenue miss of $12.56 billion vs. Wall Street analysts’ expectations of $12.62 billion. The company stated that they benefited this quarter from strong travel demand mainly from high-paying passengers, which helped boost earnings for the quarter.

The airline also gave an update on its guidance for the next quarter. Delta now expects next quarter earnings per share to come in a wide-range of $1.20-$1.50.  Wall Street analysts’ are looking for Delta to release next quarter earnings per share of $1.51. Delta is looking for its costs excluding fuel to rise by nearly 5% in the next quarter. Additionally, at the beginning of October 2019, Delta increased wages for ground staff and flight attendants by 4%.

(Chart above courtesy of ​www.tipranks.com​)

Based on a survey of 12 analysts offering 12-month price targets, the average price target for Delta’s stock is $67.83. According to that number, the stock is priced at a discount relative to Wall Street’s analysts and could be considered undervalued around current levels near $52.12.

In the first quarter of 2018, legendary investor Warren Buffett has raised his investment in Delta, purchasing over $265 million worth of stock with an average price of $49.40.

Investors in the airline space should look to competitor United Airline’s (Ticker Symbol: UAL) earnings release on October 15th for fresh news within the sector.

 


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