Delta Air Lines (NYSE:DAL) is scheduled to announce Q3 earnings results on Thursday, October 13th, before market open.
The consensus EPS Estimate is $1.53 vs. $0.30 year ago and the consensus Revenue Estimate is $13.32B (+45.6% Y/Y).
Analysts expects load factor to rise sharply Y/Y to its highest level in three years.
Earnings history: The company missed bottom-line in Q2 but believed to be on track to achieve 2024 targets of over $7 adj. EPS and $4B of free cash flow. For Q3, the airline guided Capacity to be down ~15% to 17% vs. 3Q19; Total Revenue to grow by 1% to 5% vs. 3Q19; Adjusted Net Debt of ~$20B down from Q2 net debt of $19.6B.
Over the last 2 years, DAL has beaten EPS estimates 63% of the time and has beaten revenue estimates 75% of the time.
Over the last 3 months, EPS estimates have seen 7 upward revisions and 6 downward. Revenue estimates have seen 1 upward revision and 1 downward.
Analyst Rating: Barclays analyst Brandon Oglenski cuts the price target on Delta Air Lines (DAL) to $38 from $45 and maintains an Overweight rating on the shares. The analyst despite "likely favorable" near-term revenue outlooks by most airlines, materially reduced 2023 earnings forecasts reflecting softer demand expectations and recently higher fuel prices. The Q3 earnings season could bring some brighter news on U.S. travel demand "relative to a more somber transport outlook," Oglenski tells investors in a research note. However, he reduced airline demand expectations in 2023 with EBITDAR estimates coming down roughly 20%.
As airline stocks have been under pressure for most of the year and booking trends for air travel have fallen below pre-pandemic levels. Airline bookings in August was reportedly almost 24% below where they were in August 2019, even though booking prices were modestly lower.
The NYSE Arca Airline index has slipped 38% this year due to pricing and inflation pressure.
Peer, American Airlines (AAL) raised Q3 revenue guidance on Tuesday. Expects to grow approximately 13% vs 2019 from prior guidance of up 10% to 12% ahead of earnings.
Wall Street Analysts gives a Buy rating to the stock based on 16 of 19 analysts’ ratings of Buy or Strong Buy. SA Quant Rating Systems says to Hold.
A quick look at SA Quant Rating's top airline stocks.
Stock has fallen 27% YTD and ~33% over the past year and has underperformed the broader market index:
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