Delta Air Lines Fourth Quarter Earnings Sneak Peek

Delta Air Lines (NYSE:DAL) will unveil its latest earnings on Tuesday, January 22, 2013. Delta Air Lines operates as an airline, providing scheduled air transportation for passengers and cargo throughout the United States and around the world.

Delta Air Lines Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 28 cents per share, a decline of 37.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 34 cents. Between one and three months ago, the average estimate moved down. It has risen from 27 cents during the last month. For the year, analysts are projecting net income of $1.83 per share, a rise of 29.8% from last year.

Past Earnings Performance: Last quarter, the company fell short of estimates by one cent, coming in at profit of 90 cents per share against a mean estimate of net income of 91 cents. The company topped expectations in the second quarter.

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A Look Back: In the third quarter, profit rose 90.7% to $1.05 billion ($1.23 a share) from $549 million (65 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 1.1% to $9.92 billion from $9.82 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.62 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

Wall St. Revenue Expectations: On average, analysts predict $8.58 billion in revenue this quarter, a rise of 2.1% from the year-ago quarter. Analysts are forecasting total revenue of $36.65 billion for the year, a rise of 4.4% from last year’s revenue of $35.12 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 7.8% in the fourth quarter of the last fiscal year, 8.6% in the first quarter and 6.3% in the second quarter before increasing again in the third quarter.

Analyst Ratings: With 10 analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)