Delta Air Lines Earnings: Here’s Why Shares are Down Now
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 down 2.25%.
Delta Air Lines Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $0.1 in the quarter versus EPS of $-0.05 in the year-earlier quarter.
Revenue: Rose 1.03% to $8.5 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Delta Air Lines Inc. reported adjusted EPS income of $0.1 per share. By that measure, the company beat the mean analyst estimate of $0.06. It missed the average revenue estimate of $8.51 billion.
Quoting Management: “Our results represent Delta’s strongest March quarter financial and operational performance in over a decade and I want to thank Delta people worldwide for all the hard work that went into producing these results for our company. This performance is proof that we are on the right path to making Delta the airline of choice for our shareholders, employees, and customers,” said Richard Anderson, Delta’s chief executive officer. “With a solid financial foundation and building momentum from initiatives like our LaGuardia expansion, Virgin Atlantic investment and new Terminal 4 at New York-JFK, we are well positioned to generate significant improvements in Delta’s profitability going forward.”
Key Stats (on next page)…
Revenue decreased 1.19% from $8.6 billion in the previous quarter. EPS decreased 64.29% from $0.28 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 $0.94 to a profit $0.95. For the current year, the average estimate has moved down from a profit of $2.6 to a profit of $2.59 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)