Delta Air Lines Poised for Strong Q4 Earnings Report
With a market capitalization of $33.3 billion, Delta Air Lines, Inc. (DAL) stands as a significant player in the global airline industry, based in Atlanta, Georgia. It ranks among the world’s largest airlines, with a vast network that connects over 300 destinations across six continents. The company is set to reveal its fiscal Q4 earnings on Friday, January 10.
Analysts Anticipate Significant Earnings Increase
Analysts forecast that DAL will report earnings of $1.77 per share for the quarter, marking a notable increase of 38.3% from $1.28 per share in the same quarter last year. Historically, Delta has exceeded Wall Street’s expectations in two out of the last four earnings reports, while it fell short on two occasions.
Looking Ahead to Fiscal 2024 and 2025
For the upcoming fiscal year 2024, projections indicate Delta Air Lines may report earnings per share (EPS) of $6.08, reflecting a slight decrease of 2.7% from $6.25 in fiscal 2023. However, EPS is anticipated to rebound in fiscal 2025, with an expected growth of 18.3% to $7.19.
Strong Performance Compared to Broader Market
In 2024, DAL has outperformed the broader market, with shares increasing by 50.9% over the past year. This compares favorably to the S&P 500 Index ($SPX), which gained 23.8%, and the S&P 500 Industrial Sector SPDR (XLI) that saw a return of 15.7%.
Recent Earnings Results Show Strong Financials
On October 10, Delta Air Lines published its Q3 earnings, resulting in a 2.1% share price increase in the next trading session. The airline reported $14.6 billion in operating revenue and $1.4 billion in operating income, which led to a commendable operating margin of 9.4%. This quarter’s earnings per share reached $1.50, backed by a robust operating cash flow of $1.3 billion and free cash flow totaling $95 million, contributing to a year-to-date free cash flow of $2.7 billion.
Analysts Remain Optimistic About DAL’s Future
The consensus among analysts regarding Delta Air Lines stock is overwhelmingly positive, with a “Strong Buy” rating given unanimously by all 20 analysts following the stock. The average price target for DAL stands at $75.74, suggesting a potential upside of 24.8% from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart
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