Shares of Delta Air Lines (DAL - Free Report) have moved about 1.5% higher Thursday, despite the company announcing revenues that missed expectations in its latest earnings report.
The Atlanta, GA-based carrier reported earnings of $1.70 per share, which beat the Zacks Consensus Estimate of $1.65. However, its quarterly revenue of $10.483 billion declined 2.3% year-over-year and missed our consensus estimate of $10.595 billion.
Also Read: Delta Air Lines Beats on Q3 Earnings, Misses Sales
Despite relatively disappointing revenue, Delta is moving higher on one key piece of data from its report, according to Stifel analyst Joseph DeNardi.
“Delta provided initial guidance for 2017 capacity growth of +1% which is better than most expected, in our view… Now, the question will come down to how that 1% growth is split domestic vs. international,” Denardi said, via Barron’s.
DeNardi blamed the weak pricing environment many airliners are facing on the current supply glut and said that any capacity growth above 1% would be “excessive.” The analyst also noted that Passenger Revenue per Available Seat Mile, or PRASM, would be an important figure to track going forward.
“Delta being the 2nd airline to provide constructive 2017 guidance and the 1st of the Big 3 to do so, gives us more confidence that pricing trends will improve and reinforces our view that, all-in, the thesis of capacity discipline is largely intact – though it’s taken longer than expected to be enforced during this period of PRASM weakness,” he concluded.
For now, Delta remains a Zacks Rank #3 (Hold).
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Shares of Delta Air Lines (DAL - Free Report) have moved about 1.5% higher Thursday, despite the company announcing revenues that missed expectations in its latest earnings report.
The Atlanta, GA-based carrier reported earnings of $1.70 per share, which beat the Zacks Consensus Estimate of $1.65. However, its quarterly revenue of $10.483 billion declined 2.3% year-over-year and missed our consensus estimate of $10.595 billion.
Also Read: Delta Air Lines Beats on Q3 Earnings, Misses Sales
Despite relatively disappointing revenue, Delta is moving higher on one key piece of data from its report, according to Stifel analyst Joseph DeNardi.
“Delta provided initial guidance for 2017 capacity growth of +1% which is better than most expected, in our view… Now, the question will come down to how that 1% growth is split domestic vs. international,” Denardi said, via Barron’s.
DeNardi blamed the weak pricing environment many airliners are facing on the current supply glut and said that any capacity growth above 1% would be “excessive.” The analyst also noted that Passenger Revenue per Available Seat Mile, or PRASM, would be an important figure to track going forward.
“Delta being the 2nd airline to provide constructive 2017 guidance and the 1st of the Big 3 to do so, gives us more confidence that pricing trends will improve and reinforces our view that, all-in, the thesis of capacity discipline is largely intact – though it’s taken longer than expected to be enforced during this period of PRASM weakness,” he concluded.
For now, Delta remains a Zacks Rank #3 (Hold).
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on DAL - FREE