Delta Air Lines Earnings: Here’s Why Investors Like These Results

Delta Air Lines Inc. (NYSE:DAL) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.64%.

Delta Air Lines Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 42.03% to $0.98 in the quarter versus EPS of $0.69 in the year-earlier quarter.

Revenue: Decreased 0.26% to $9.71 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Delta Air Lines Inc. reported adjusted EPS income of $0.98 per share. By that measure, the company beat the mean analyst estimate of $0.95. It missed the average revenue estimate of $9.74 billion.

Quoting Management: “Our June quarter operational and financial performance is among the best in Delta’s history. These results reflect the momentum we are building at Delta and I want to thank Delta employees worldwide for their great work, which has led to $138 million accrued for our profit sharing program this year in addition to $45 million of Shared Rewards,” said Richard Anderson, Delta’s chief executive officer. “We have significant opportunities ahead of us to expand margins, cash flows and profitability. With initiatives like our new Terminal 4 at JFK, the Virgin Atlantic joint venture, and our quarterly dividend and share repurchase program, we are relentless in our efforts to build a better airline for our employees, customers, and shareholders.”

Key Stats (on next page)…

Revenue increased 14.2% from $8.5 billion in the previous quarter. EPS increased 880% from $0.10 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.13 and has not changed. For the current year, the average estimate has moved up from a profit of $2.62 to a profit of $2.67 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)