- Delta Airlines projects its fourth-quarter adjusted earnings per share (EPS) to be between $1.60 and $1.85, with the estimate at $1.78.
- The third-quarter results showed adjusted EPS at $1.50, down from $2.03 the previous year, close to the estimate of $1.52.
- Reported EPS for the third quarter was $1.97, an increase from $1.72 the previous year.
- Adjusted revenue for the third quarter was $14.59 billion, slightly below the estimated $14.65 billion.
- Passenger revenue was $13.11 billion, nearly unchanged year-over-year and just under the estimate of $13.17 billion.
- Cargo revenue increased by 27% year-over-year, reaching $196 million, exceeding the estimate of $177.6 million.
- The passenger load factor was 87%, slightly below last year’s 88% and close to the estimate of 87.2%.
- Available seat miles rose 4% year-over-year to 76.16 billion, just below the estimate of 76.30 billion.
- Revenue passenger miles increased by 3.5% year-over-year, totaling 66.31 billion, slightly under the estimate of 66.53 billion.
- Adjusted net income stood at $971 million, down 26% from the previous year and below the estimate of $980.8 million.
- Yield per passenger mile decreased by 3.4% year-over-year to 19.77 cents.
- The company attributed a 45-cent impact on third-quarter EPS due to a CrowdStrike-related outage.
- Delta anticipates fourth-quarter revenue growth of 2% to 4% year-over-year, with an operating margin between 11% and 13%.
- The full-year EPS is expected to be around the midpoint of the initial guidance range of $6 to $7, excluding the CrowdStrike impact.
- Strong bookings for the holiday period are noted, but a one-point impact on total unit revenue in the December quarter is anticipated due to reduced travel demand around the election.
Delta Air Lines on Smartkarma
Analyst coverage of Delta Air Lines on Smartkarma shows a diverse range of insights and sentiments from top independent analysts. The Tech Supply Chain Tracker report on 5th July 2024, highlights the increasing competitiveness in the semiconductor industry by countries like South Korea, Taiwan, China, and Vietnam. The report mentions South Korea’s focus on enhancing its EDA competitiveness to maintain a technological edge, while China is concentrating on strengthening key chip firms amidst market control measures. The impact of commodity DRAM and NAND chip prices on Taiwanese companies and PanelSemi is also discussed, alongside Vietnam’s strategic investments in display production and clean energy.
The analysts’ sentiments, as reflected in the report, lean towards a bullish outlook on the industry’s technological advancements and strategic positioning by key players. With Taiwan’s ambitions in floating wind technology and a projected global investment of EUR 250 billion by 2035, the research underscores the dynamic landscape of innovation and competition within the semiconductor and related industries. Smartkarma’s platform serves as a valuable resource for investors seeking in-depth analysis and diverse perspectives on companies like Delta Air Lines, offering a comprehensive view of market trends and developments.
A look at Delta Air Lines Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Delta Air Lines, Inc. is viewed favorably for its long-term outlook based on Smartkarma Smart Scores. With a solid Growth score of 4, the company is expected to experience positive expansion opportunities in the future. Additionally, its Momentum score of 4 suggests that Delta Air Lines is gaining traction and showing strong performance in the market. These scores indicate a promising trajectory for the company in terms of growth and market momentum.
Although Delta Air Lines has average scores for Value and Resilience, with values of 3 and 2 respectively, its overall outlook remains positive. The company’s value proposition is decent, and while it may not be the highest in the industry, it still indicates a level of attractiveness. Moreover, despite a moderate Resilience score, Delta Air Lines‘ strong Growth and Momentum scores bode well for its ability to weather challenges and maintain stability over the long term.
Summary: Delta Air Lines, Inc. provides scheduled air transportation for passengers, freight, and mail over a network of routes throughout the United States and internationally.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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