- Delta Air Lines expects its 3rd quarter adjusted EPS to be between $1.70 to $2, lower than the estimated $2.04.
- The yearly forecast for adjusted EPS remains $6 to $7, compared to the estimate of $6.60.
- In the second quarter:
- Adjusted EPS was $2.36, below last year’s $2.68 but close to the estimate of $2.38.
- Regular EPS dropped to $2.01 from last year’s $2.84.
- Adjusted revenue was $15.41 billion, a 5.4% increase from last year but slightly below the $15.43 billion estimate.
- Passenger revenue grew by 4.8% to $13.84 billion, falling short of the $13.92 billion estimate.
- Cargo revenue increased by 16% to $199 million, exceeding the $167.9 million estimate.
- Passenger load factor was 87%, down from 88% last year and below the 87.9% estimate.
- Available seat miles rose by 8.2% to 74.66 billion, surpassing the 73.65 billion estimate.
- Revenue passenger miles went up by 7.3% to 65.24 billion, above the 64.75 billion estimate.
- Adjusted net income was $1.53 billion, an 11% decrease from last year, meeting the estimate.
- Yield per passenger mile fell by 2.3% to 21.22 cents.
- Delta anticipates a 2% to 4% increase in total revenue and an 11% to 13% operating margin for Q3.
- As per Delta’s president, capacity growth is slowing as the international network and core hubs recover, and the airline retires older aircraft.
- For the September quarter, Delta forecasts a 5% to 6% capacity growth.
Delta Air Lines on Smartkarma
Analyst coverage of Delta Air Lines on Smartkarma reveals insights into the company’s performance and potential outlook. According to the Tech Supply Chain Tracker report by an independent analyst, South Korea, Taiwan, China, and Vietnam are all focusing on strategies to enhance their competitiveness in the semiconductor industry. This emphasis on technological advancement and market positioning could have both direct and indirect impacts on companies like Delta Air Lines. The report highlights the unique priorities of each country, such as South Korea’s efforts to boost its EDA competitiveness to maintain an edge in the technological race.
The report also touches on the market dynamics affecting various industries, including fluctuations in commodity chip prices and strategic investments in display production and clean energy. Such global trends can shape the environment in which Delta Air Lines operates, influencing factors such as costs, demand, and overall market conditions. Understanding these broader movements can provide valuable context for investors evaluating Delta Air Lines‘ performance and future prospects.
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. provides scheduled air transportation for passengers, freight, and mail over a network of routes throughout the United States and internationally. When looking at the Smartkarma Smart Scores for Delta Air Lines, the company shows a promising long-term outlook. With strong scores in Growth and Momentum, indicating a high potential for future expansion and positive market performance, Delta Air Lines appears to be well-positioned for continued success in the industry.
Although the company has average scores in Value and Dividend, the above-average scores in Growth and Momentum suggest a positive trajectory for Delta Air Lines. The company’s resilience score indicates a moderate level of stability in the face of challenges. Overall, Delta Air Lines‘ strong performance in Growth and Momentum bodes well for its future prospects, making it a company to watch in the aviation sector.
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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