As was previously planned, Delta Air Lines, Inc. (DAL - Free Report) sold 32.9 million shares of Gol Linhas .
In September, the Atlanta, GA-based airline entered into a partnership with LATAM Airlines , Gol Linhas’ competitor, to buy a 20% stake for $1.9 billion. This pact (pending government approval) with Latin America's largest carrier is aimed at strengthening Delta Air Lines’ footprint in the region, where currently American Airlines (AAL - Free Report) has the largest presence.
The carrier anticipates the deal to be accretive to its earnings over the next two years. Moreover, this heavyweight contract is expected to boost revenues by $1 billion in five years. Additionally, Delta Air Lines does not expect the transaction to affect its free cash flow and therefore its commitments to add shareholder value. The transaction is also not expected to weigh on its targeted leverage ratios.
Following this largest deal win since the merger with Northwest Airlines a decade ago, Delta Air Lines decided to sell off its stake in Gol Linhas.
The deal followed American Airlines’ failure to win approval for an agreement with LATAM, which would have strengthened the carrier’s foothold in Latin America. However, in October, American Airlines announced news about its ongoing discussions over a likely partnership with Gol Linhas.
Zacks Rank
Delta Air Lines carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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.
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As was previously planned, Delta Air Lines, Inc. (DAL - Free Report) sold 32.9 million shares of Gol Linhas .
In September, the Atlanta, GA-based airline entered into a partnership with LATAM Airlines , Gol Linhas’ competitor, to buy a 20% stake for $1.9 billion. This pact (pending government approval) with Latin America's largest carrier is aimed at strengthening Delta Air Lines’ footprint in the region, where currently American Airlines (AAL - Free Report) has the largest presence.
The carrier anticipates the deal to be accretive to its earnings over the next two years. Moreover, this heavyweight contract is expected to boost revenues by $1 billion in five years. Additionally, Delta Air Lines does not expect the transaction to affect its free cash flow and therefore its commitments to add shareholder value. The transaction is also not expected to weigh on its targeted leverage ratios.
Following this largest deal win since the merger with Northwest Airlines a decade ago, Delta Air Lines decided to sell off its stake in Gol Linhas.
The deal followed American Airlines’ failure to win approval for an agreement with LATAM, which would have strengthened the carrier’s foothold in Latin America. However, in October, American Airlines announced news about its ongoing discussions over a likely partnership with Gol Linhas.
Zacks Rank
Delta Air Lines carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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 >>
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