Delta Air Lines Earnings: Here’s What Superstorm Sandy Did to Revenues

Delta Air Lines Inc. (NYSE:DAL) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0%.

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Delta Air Lines Inc. Earnings Cheat Sheet

Results: Net income decreased -98.35% to $7 million (1 cent per diluted share) in the quarter versus a net gain of $425 million in the year-earlier quarter.

Revenue: Rose 2.39% to $8.6 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Delta Air Lines Inc. reported adjusted net income of 1 cent per share. By that measure, the company missed the mean analyst estimate of $0.28. It beat the average revenue estimate of $8.59 billion.

Quoting Management: “Delta’s results this quarter are remarkable in light of the $100 million negative impact Superstorm Sandy had on our airline and refinery operations,” said Paul Jacobson, Delta’s chief financial officer.  “We have generated $4 billion in free cash flow over the past three years, and we expect to build on that momentum in 2013 with the additional benefits of further debt reduction and $1 billion of structural cost initiatives.”

Key Stats:

Revenue decreased 13.33% from $9.92 billion in the previous quarter. Net income decreased 99.33% from $1.05 billion in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.01 to a profit $0.11. For the current year, the average estimate has moved down from a profit of $1.94 to a profit of $1.83 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)