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Delta Air Lines (DAL) stock: looking solid before the earnings

12:43 pm ET, 10 Oct 2018

Delta Air Lines, Inc. (DAL) shares are trading at $50.56, down -0.59%. The company is announcing its quarterly earnings results on Thursday before the market opens.  What's driving Delta stock price? What's Delta stock price forecast?

Delta Airlines, one of the four major airlines in the U.S., operates a fleet of over 800 aircrafts.  Lately, the stock has performed well: it generated a return of 17% in the past year.

Investors have shown great interest in the stock since Delta has the leadership position among air carriers in the U.S. On the other hand, some investors feel that rising oil prices could strain airline's profits. The last quarter's revenue rose 8.1% to $11.56 billion and earnings per share came at $1.77 compared to $1.59 for the same period last year.

Third-quarter revenue will be released before market open on October 11, 2018. Analysts expect the company to earn $1.78 per share on revenue of $11.99 billion. The company missed revenue estimates in the previous four quarters and was able to beat EPS estimates three times.

What is the sentiment towards the DAL stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is positive;
  • The long-term sentiment (9-12 months) is positive. 

Over the last month, Delta Air Lines, Inc. (DAL) returned -1.63%.

Delta Air Lines, Inc. (DAL) average analyst price target ($67.49) is 16.7% above its current price ($57.83).

For the latest price and information on Delta Air Lines, Inc., please visit Finstead and search for "DAL price" or "DAL news".

Delta Air Lines (DAL) earnings preview: time for the stock to bounce back?

9:52 am ET, 10 Jul 2018

Delta Air Lines, Inc. (DAL) is expected to report earnings on July 12 before the market open.  Shares are trading at 49.26, up 0.98% from yesterday.

What are the DAL earnings expectations?  What news will the market be watching out for?  

The first quarter for Delta came in strong thanks to strong domestic and transatlantic demand, Easter timing, and premium economy, but rising fuel prices, combined with domestic capacity expansion presents a concern.

Delta’s strategy of operating an older aircraft fleet--at over 16 years on average, the fleet is the oldest among U.S. network carriers--with lower capital costs but higher maintenance and fuel demands aligns well with the current environment of low oil prices. Moreover, Delta’s maintenance operations, which typically account for about 10% of an airline’s costs, are among the lowest in the industry on a per-seat block hour basis, enabling Delta to maintain old aircraft more cost-effectively. 

Delta, more aggressively than its peers, has pursued the part-out of older aircraft to constrain spare-part expenses. Delta’s strategy also entails forming joint ventures with companies like Virgin Atlantic and China Eastern to access markets. 

Delta also drives a hard bargain with aircraft manufacturers and hunts for deals on used aircraft. Some recent examples include the Bombardier C Series order in April 2016 that featured major concessions and the carrier's purchase of used 777s for less than $10 million apiece.

Delta Air Lines, Inc. has a mixed history of beating analysts’ earnings estimates.  In the past four quarters, the company: 

  • Missed analyst EPS estimates by 2 cents ($1.64 actuals vs. $1.66 forecast) in FQ2’17;
  • Beat analyst EPS estimates by 4 cents ($1.57 actuals vs. $1.53 forecast) in FQ3’17;
  • Beat analyst EPS estimates by 8 cents ($.96 actuals vs. $.88 forecast) in FQ4’17;
  • Beat analyst EPS estimates by 2 cents ($.74 actuals vs. $.72 forecast) in FQ1’18;

For FQ2’18, EPS is expected to grow by 7% year-over-year to $1.75, while revenue is expected to grow 8% year-over-year to $11.62 billion.  


Over the last month, Delta Air Lines, Inc. (DAL) returned -9.9%.

Delta Air Lines, Inc. (DAL) average analyst price target ($72.28) is 46.73% above its current price ($49.26).

For the latest price and information on Delta Air Lines, Inc., please visit Finstead and search for "DAL price" or "DAL news".

Delta Airlines: Do Not Buy Yet

1:53 am ET, 11 Jan 2018

delta airlines

Delta Airlines (NYSE: DAL) is set to release its quarterly earnings report on January 11, 2018, moments before the opening bell. Its 2017 fourth-quarter net profit is expected to be hurt by higher operational costs. 

The Company revised its guidance for the fourth quarter non-fuel costs upwards while releasing its December traffic results. This upward revision was mainly occasioned by the power outage at Atlanta’s airport.  

The power outage also impacted Delta’s revenue and stock performance. This outage did not, however, significantly affect its fourth-quarter Passenger Revenue per Available Seat Mile (PRASM). The Company, therefore, hopes to maintain its positive performance well into 2018. 

The above facts notwithstanding, Delta’s shares don’t look at this point in time. Below are the three main reasons contributing to the bear case for the Delta stock: 

  • Higher operational costs are likely to shrink the Company’s net profit in the last quarter; much the same way it did in the third quarter. 
  • Its shares have underperformed for the last three months. The gains in stock have been far below the overall gains in the industry. This has mainly been occasioned by the power outage in the Atlanta area. 
  • The company had to cancel numerous flights because of the winter storm Grayson alongside other weather-related disasters. The multiple hurricanes of the past year have also had a serious negative impact on its gross sales revenues. 

Over the last year, DAL returned +9.35%. This return is higher than Services Sector (5.82%) but lower than Major Airlines Industry (17.37%) and S&P 500 (21.13%) returns.

Delta Air Lines, Inc. (DAL) Stock Guide

Updated at: 4:09 pm ET, 17 Sep 2020

Before we start: if you're looking for DAL stock price, you can quickly find it out by visiting Finny and typing "DAL quote". If you're looking for a quick scoop on DAL stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "DAL". You'll get all this info in one place. Or you can just type "DAL news" to get the latest stock news.

Looking to buy or sell Delta Air Lines, Inc. (DAL)? Interested in getting the full scoop on DAL, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this DAL stock guide, we'll address key questions about DAL, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are DAL earnings?
2. What is DAL stock forecast (i.e., prediction)?
3. DAL buy or sell? What is DAL Finny Score?
4. What are the reasons to buy DAL? Why should I buy DAL stock?
5. What are the reasons to sell DAL? Why should I sell DAL stock?
6. What are DAL key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are DAL earnings?

DAL trailing 12-month earnings per share (EPS) is -$5.71.

Analyst Predictions

2. What is DAL stock forecast (i.e., prediction)?

Based on DAL analyst price targets, DAL stock forecast is $35.47 (for a year from now). That means the average analyst price target for DAL stock is $35.47. The prediction is based on 18 analyst estimates.

The low price target for DAL is $21.00, while the high price target is $47.00.

DAL analyst rating is Buy.

Analysis

3. DAL buy or sell? What is DAL Finny Score?

#{finnyScore:67}Our quantitative analysis shows 4 reasons to buy and 2 reasons to sell DAL, resulting in Finny Score of 67.

4. What are the reasons to buy DAL? Why should I buy DAL stock?

Here are the reasons to buy DAL stock:

  • Delta will extract value out of its international joint ventures, enabling it to access Chinese, Latin American, and European markets more effectively than its peers.
  • Delta’s strategy of operating an older fleet keeps a lid on depreciating expenses and capital expenditures and aligns well with the current era of low fuel prices.
  • Management will continue to beat peers on metrics such as on-time arrivals and completion rate; customers will reward the company by preferring it over network peers and awarding it a PRASM premium.
  • DAL profitability is improving. The YoY profit margin change was 0.18 percentage points. See DAL profitability chart.
  • DAL forward P/E ratio is 15.99, which is low compared to its industry peers’ P/E ratios. See DAL forward P/E ratio chart.
  • DAL average analyst rating is Buy. See DAL analyst rating chart.
  • DAL cash to debt ratio is 0.46, higher than the average industry (0.16) and sector (0.12) cash to debt ratio. See DAL cash to debt chart.

5. What are the reasons to sell DAL? Why should I sell DAL stock?

Let's look at the reasons to sell DAL stock (i.e., the bear case):

  • Delta’s PRASM premium will be competed away as competitors like JetBlue and Southwest offer premium seating options to customers, other network carriers roll out basic economy, and LCCs enter the Atlantic market.
  • Delta’s JVs with international airlines will not return the expected benefits, and customers will become increasingly frustrated by the lack of coordination between Delta and its partners.
  • Delta and other U.S. airlines will continue to bid away the profits from lower fuel prices, pushing fares down and depressing Delta's profitability.
  • DAL quarterly revenue growth was -88.30%, lower than the industry and sector average revenue growth (2.98% and 1.01%, respectively). See DAL revenue growth chart.
  • DAL Price/Book ratio is 2.25, which is high compared to its industry peers’ P/B ratios. See DAL forward Price/Book ratio chart.

Key Stats

6. What are DAL key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for DAL:

Metrics DAL
Price $29.61
Average Price Target / Upside $38.16 / 28.88%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Airlines
Sector Industrials
Number of Employees 89,000
Market Cap $20.26B
Forward P/E Ratio 79.40
Price/Book Ratio 0.82
Revenue (TTM) $24.56B
YoY Quarterly Revenue Growth -75.60%
Profit Margin -42.88%

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