Our coverage:

Delta Air Lines (DAL) earnings preview: time for the stock to bounce back?

Carla Olson | 9:52 am ET, 10 Jul 2018

Delta Air Lines, Inc. (DAL) is expected to report earnings on July 12 before the market open.  Shares are trading at 49.26, up 0.98% from yesterday.

What are the DAL earnings expectations?  What news will the market be watching out for?  

The first quarter for Delta came in strong thanks to strong domestic and transatlantic demand, Easter timing, and premium economy, but rising fuel prices, combined with domestic capacity expansion presents a concern.

Delta’s strategy of operating an older aircraft fleet--at over 16 years on average, the fleet is the oldest among U.S. network carriers--with lower capital costs but higher maintenance and fuel demands aligns well with the current environment of low oil prices. Moreover, Delta’s maintenance operations, which typically account for about 10% of an airline’s costs, are among the lowest in the industry on a per-seat block hour basis, enabling Delta to maintain old aircraft more cost-effectively. 

Delta, more aggressively than its peers, has pursued the part-out of older aircraft to constrain spare-part expenses. Delta’s strategy also entails forming joint ventures with companies like Virgin Atlantic and China Eastern to access markets. 

Delta also drives a hard bargain with aircraft manufacturers and hunts for deals on used aircraft. Some recent examples include the Bombardier C Series order in April 2016 that featured major concessions and the carrier's purchase of used 777s for less than $10 million apiece.

Delta Air Lines, Inc. has a mixed history of beating analysts’ earnings estimates.  In the past four quarters, the company: 

  • Missed analyst EPS estimates by 2 cents ($1.64 actuals vs. $1.66 forecast) in FQ2’17;
  • Beat analyst EPS estimates by 4 cents ($1.57 actuals vs. $1.53 forecast) in FQ3’17;
  • Beat analyst EPS estimates by 8 cents ($.96 actuals vs. $.88 forecast) in FQ4’17;
  • Beat analyst EPS estimates by 2 cents ($.74 actuals vs. $.72 forecast) in FQ1’18;

For FQ2’18, EPS is expected to grow by 7% year-over-year to $1.75, while revenue is expected to grow 8% year-over-year to $11.62 billion.  


Over the last month, Delta Air Lines, Inc. (DAL) returned -9.9%.

Delta Air Lines, Inc. (DAL) average analyst price target ($72.28) is 46.73% above its current price ($49.26).

For the latest price and information on Delta Air Lines, Inc., please visit Finstead and search for "DAL price" or "DAL news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Delta Airlines: Do Not Buy Yet

Carla Olson | 1:53 am ET, 11 Jan 2018

delta airlines

Delta Airlines (NYSE: DAL) is set to release its quarterly earnings report on January 11, 2018, moments before the opening bell. Its 2017 fourth-quarter net profit is expected to be hurt by higher operational costs. 

The Company revised its guidance for the fourth quarter non-fuel costs upwards while releasing its December traffic results. This upward revision was mainly occasioned by the power outage at Atlanta’s airport.  

The power outage also impacted Delta’s revenue and stock performance. This outage did not, however, significantly affect its fourth-quarter Passenger Revenue per Available Seat Mile (PRASM). The Company, therefore, hopes to maintain its positive performance well into 2018. 

The above facts notwithstanding, Delta’s shares don’t look at this point in time. Below are the three main reasons contributing to the bear case for the Delta stock: 

  • Higher operational costs are likely to shrink the Company’s net profit in the last quarter; much the same way it did in the third quarter. 
  • Its shares have underperformed for the last three months. The gains in stock have been far below the overall gains in the industry. This has mainly been occasioned by the power outage in the Atlanta area. 
  • The company had to cancel numerous flights because of the winter storm Grayson alongside other weather-related disasters. The multiple hurricanes of the past year have also had a serious negative impact on its gross sales revenues. 

Over the last year, DAL returned +9.35%. This return is higher than Services Sector (5.82%) but lower than Major Airlines Industry (17.37%) and S&P 500 (21.13%) returns.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Delta Air Lines, Inc. (DAL) Buy or Sell Stock Guide

Updated at: 4:32 am ET, 12 Jun 2019

Are you looking for the analysis of Delta Air Lines, Inc. (DAL) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 6 reasons to buy and 4 reasons to sell DAL stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about DAL stock:

  • Is DAL a buy or a sell?
  • Should I sell or hold DAL stock today?
  • Is DAL a good buy / investment?
  • What are DAL analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy DAL stock:

1. Delta will extract value out of its international joint ventures, enabling it to access Chinese, Latin American, and European markets more effectively than its peers.

2. Delta’s strategy of operating an older fleet keeps a lid on depreciating expenses and capital expenditures and aligns well with the current era of low fuel prices.

3. Management will continue to beat peers on metrics such as on-time arrivals and completion rate; customers will reward the company by preferring it over network peers and awarding it a PRASM premium.

4. DAL forward dividend yield is 2.40%, higher than the industry (0.68%) and sector (0.45%) forward dividend yields. See DAL forward dividend chart.

5. DAL average analyst rating is Buy. See DAL analyst rating chart.

6. DAL average analyst price target ($66.55) is above its current price ($54.88). See DAL price target chart.

Now that you understand the bull case, let’s look at the reasons to sell DAL stock (i.e., the bear case):

1. Delta’s PRASM premium will be competed away as competitors like JetBlue and Southwest offer premium seating options to customers, other network carriers roll out basic economy, and LCCs enter the Atlantic market.

2. Delta’s JVs with international airlines will not return the expected benefits, and customers will become increasingly frustrated by the lack of coordination between Delta and its partners.

3. Delta and other U.S. airlines will continue to bid away the profits from lower fuel prices, pushing fares down and depressing Delta's profitability.

4. DAL profitability is declining. The YoY profit margin change was -2.36percentage points. See DAL profitability chart.

Now let's look at the key statistics for DAL:

Metrics DAL
Price $55.98
Average Price Target / Upside $66.55 / 18.88%
Average Analyst Rating Buy
Industry Airlines
Sector Industrials
Number of Employees 89,000
Market Cap $36.65B
Forward P/E Ratio 7.74
Price/Book Ratio 0.82
PEG 0.64
Revenue (TTM) $44.94B
YoY Quarterly Revenue Growth 5.1%
Profit Margin 9.14%

What are your thoughts on DAL?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Try Finstead: the fastest way to get market data and insights on stocks, ETFs, mutual funds, and cryptocurrencies