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Delta (DAL) Soars 6.8%: Is Further Upside Left in the Stock?
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Delta Air Lines (DAL - Free Report) shares rallied 6.8% in the last trading session to close at $46.09. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20.2% gain over the past four weeks.
The uptick was owing to the management's bullish projections at at its investor day presentation. The projections for the second quarter and full-year 2023 were attributable to the buoyant scenario with respect to air-travel demand. Management now anticipates full-year adjusted earnings to be $6 per share, which is at the top end of its previous expectation in the $5-$6 range. Delta now expects adjusted earnings per share to be in the range of $2.25 to $2.50 for the second quarter of 2023. The earlier expectation was in the range of $2 to $2.25. Moreover, Delta has raised its revenue outlook for the second quarter, expecting growth between 17% and 18%, higher than the previous range of 15% to 17%.
For full-year 2023, the company has increased its revenue outlook to a range of 17% to 20% year over year growth, compared to the earlier forecast of a 15% to 20% jump. Delta also raised its estimate for free cash generation in 2023 from $2 billion to $3 billion. The company expects current-year operating margins at the top end of the 10-12% range expected previously.
This airline is expected to post quarterly earnings of $2.11 per share in its upcoming report, which represents a year-over-year change of +46.5%. Revenues are expected to be $14.89 billion, up 7.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Delta, the consensus EPS estimate for the quarter has been revised 2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on DAL going forward to see if this recent jump can turn into more strength down the road.
Delta is part of the Zacks Transportation - Airline industry. Spirit (SAVE - Free Report) , another stock in the same industry, closed the last trading session 3.5% higher at $16.84. SAVE has returned 9.9% in the past month.
Spirit's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.31. Compared to the company's year-ago EPS, this represents a change of +203.3%. Spirit currently boasts a Zacks Rank of #3 (Hold).
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Delta (DAL) Soars 6.8%: Is Further Upside Left in the Stock?
Delta Air Lines (DAL - Free Report) shares rallied 6.8% in the last trading session to close at $46.09. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20.2% gain over the past four weeks.
The uptick was owing to the management's bullish projections at at its investor day presentation. The projections for the second quarter and full-year 2023 were attributable to the buoyant scenario with respect to air-travel demand. Management now anticipates full-year adjusted earnings to be $6 per share, which is at the top end of its previous expectation in the $5-$6 range. Delta now expects adjusted earnings per share to be in the range of $2.25 to $2.50 for the second quarter of 2023. The earlier expectation was in the range of $2 to $2.25. Moreover, Delta has raised its revenue outlook for the second quarter, expecting growth between 17% and 18%, higher than the previous range of 15% to 17%.
For full-year 2023, the company has increased its revenue outlook to a range of 17% to 20% year over year growth, compared to the earlier forecast of a 15% to 20% jump. Delta also raised its estimate for free cash generation in 2023 from $2 billion to $3 billion. The company expects current-year operating margins at the top end of the 10-12% range expected previously.
This airline is expected to post quarterly earnings of $2.11 per share in its upcoming report, which represents a year-over-year change of +46.5%. Revenues are expected to be $14.89 billion, up 7.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Delta, the consensus EPS estimate for the quarter has been revised 2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on DAL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Delta is part of the Zacks Transportation - Airline industry. Spirit (SAVE - Free Report) , another stock in the same industry, closed the last trading session 3.5% higher at $16.84. SAVE has returned 9.9% in the past month.
Spirit's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.31. Compared to the company's year-ago EPS, this represents a change of +203.3%. Spirit currently boasts a Zacks Rank of #3 (Hold).