Delta Air Lines, Inc. Second Quarter Earnings Sneak Peek

Delta Air Lines, Inc. (NASDAQ:DAL) will unveil its latest earnings on Monday, July 18, 2011. Delta Air Lines, Inc. operates as an airline, providing scheduled air transportation for passengers and cargo throughout the United States and around the world.

Delta Air Lines, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 50 cents per share, a decline of 23.1% 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 56 cents. Between one and three months ago, the average estimate moved down and dropped from 55 cents during the last month. For the year, analysts are projecting net income of $1.28 per share, a decline of 25.1% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported net loss of 38 cents per share against a mean estimate of a loss of 50 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by 6 cents.

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Wall St. Revenue Expectations: On average, analysts predict $9.16 billion in revenue this quarter, a rise of 12.1% from the year ago quarter. Analysts are forecasting total revenue of $34.66 billion for the year, a rise of 9.1% from last year’s revenue of $31.76 billion.

Analyst Ratings: Analysts are bullish on this stock with nine analysts rating it as a buy, none rating it as a sell and two rating it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 15.6%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 18.2% from the year earlier quarter.

Delta Air Lines’ loss in the latest quarter follows profits in the previous three quarters. The company reported a loss of of $318 million in the first quarter, a profit of $19 million in the fourth quarter of the last fiscal year, a profit of $363 million in the third of the last fiscal year and a profit of $467 million in the second quarter of the last fiscal year.

The company’s gross margin shrank by 11.8 percentage points in the in the first quarter. Revenue rose 13.1% while cost of sales rose 36.4% to $5.36 billion from a year earlier.

Competitors to Watch: AMR Corporation (NYSE:AMR), United Continental Hldgs., Inc. (NYSE:UAL), Alaska Air Group, Inc. (NYSE:ALK), US Airways Group, Inc. (NYSE:LCC), Southwest Airlines Co. (NYSE:LUV), JetBlue Airways Corp. (NASDAQ:JBLU), AirTran Holdings, Inc. (NYSE:AAI), Hawaiian Holdings, Inc. (NASDAQ:HA) and SkyWest, Inc. (NASDAQ:SKYW).

Stock Price Performance: During May 13, 2011 to July 12, 2011, the stock price had fallen $2.04 (-19.2%) from $10.65 to $8.61. The stock price saw one of its best stretches over the last year between April 12, 2011, and April 25, 2011, when shares rose for nine-straight days, rising 10% (+90 cents) over that span. It saw one of its worst periods between April 25, 2011, and May 3, 2011, when shares fell for seven-straight days, falling 14.4% (-$1.52) over that span. Shares are down $3.99 (-31.7%) year to date.

(Source: Xignite Financials)

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