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Delta Air Lines (DAL) Beats on Q3 Earnings

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Delta Air Lines, Inc. (DAL - Free Report) is the one of the largest U.S. airlines and provides scheduled air transportation for passengers and cargo across the globe. The Atlanta, GA based Delta has reported higher-than-expected earnings in two of the last four quarters with an average beat of 1.8%.

Zacks Rank: Currently, Delta Air Lines has a Zacks Rank #5 (Strong Sell) but that could change following the company’s earnings report which was just released. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.  

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Delta Air Lines’ earnings (excluding 7 cents from non-recurring items) of $1.57 per share beat the Zacks Consensus Estimate of $1.54. Earnings, however, declined 7.6% on a year-over-year basis due to higher costs.

Revenue: Operating revenues came in at $11,060 million, above the Zacks Consensus Estimate of $11,036.6 million. Revenues increased 5.5% from the year-ago figure.

Key Stats to Note: The airline behemoth witnessed a 1.9% rise in consolidated passenger revenue per available seat mile (PRASM: a key measure of unit revenue) in the quarter. For the fourth quarter of 2017, the carrier expects operating margin in the range of 11% to 13%. The estimated fuel price, including taxes and refinery impact, is expected in the range of $1.82 to $1.87 per gallon for the fourth quarter. System capacity is expected to be up approximately 2% on a year over year basis. The company expects passenger unit revenue to increase in the band of 2% to 4% (on a year-over-year basis) in the fourth quarter. Cost per Available Seat Mile (normalized), including profit sharing, is expected to increase in the band of 4% to 5% in the fourth quarter.

Delta Air Lines, Inc. Price and EPS Surprise

 

Delta Air Lines, Inc. Price and EPS Surprise | Delta Air Lines, Inc. Quote

 

Stock Price: The earnings beat pleased the investors. Consequently shares of the company were up in pre-market trading at the time of writing.

Check back later for our full write up on this Delta Air Lines earnings report later!

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