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What's in the Cards for Delta (DAL) This Earnings Season?
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Delta Air Lines (DAL - Free Report) is scheduled to report first-quarter 2021 results on Apr 15, before the market opens.
The company’s earnings lagged the Zacks Consensus Estimate in three of the last four quarters and beat the same in the remaining one. Notably, the Zacks Consensus Estimate for first-quarter bottom line has widened to a loss of $2.79 per share from a loss of $2.63, 60 days ago.
Against this backdrop, let’s discuss the factors that might have impacted Delta’s performance in the March quarter.
Driven by the recent uptick in air-travel demand, passenger revenues at Delta are likely to have been high on a sequential basis in the quarter to be reported. The Zacks Consensus Estimate for the to-be-reported quarter’s passenger revenues indicates an 11.1% increase from the number reported in the December quarter. Moreover, the Zacks Consensus Estimate for traffic (measured in revenue passenger miles) suggests a 27.5% improvement from the December quarter’s reported figure.
Owing to higher traffic, load factor (% of seats filled with passengers) is expected to have improved sequentially in the March quarter. The Zacks Consensus Estimate for the to-be-reported quarter’s load factor is currently pegged at 48%, suggesting growth from 42% reported in the December quarter.
Despite the recent improvement, the picture with respect to air-travel demand is bleak when compared to the year-ago levels. For example, the Zacks Consensus Estimate for passenger revenues implies a 60.1% decline from the number reported in the year-ago quarter. Moreover, the Zacks Consensus Estimate for traffic suggests a 55.1% decrease from the year-earlier quarter’s reported number.
Due to the subdued traffic, load factor is likely to have declined year over year in the March quarter. The Zacks Consensus Estimate for the to-be-reported quarter’s load factor is currently pegged at 48%, indicating a fall from 73% reported in the year-ago quarter.
To mitigate the extreme demand depression, the carrier is trimming its capacity. The Zacks Consensus Estimate for consolidated available seat miles (a measure of capacity) implies a 31.6% slump from the number reported in the year-earlier quarter. Also, the Zacks Consensus Estimate for first-quarter passenger revenues per available seat miles (PRASM: a key measure of unit revenues) is pegged at 7.58 cents, indicating a 41% decline from the figure reported in the year-ago quarter.
The recent increase in fuel price per gallon is expected to have hurt the bottom line in the March quarter. The Zacks Consensus Estimate for the March quarter’s fuel price per gallon (adjusted) is currently pegged at $1.63, hinting at a 13.2% increase the December quarter’s reported figure.
What Does the Zacks Model Unveil?
The proven Zacks model does not predict a bottom-line beat for Delta this time around. Notably, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive earnings surprise. However, this is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Delta has an Earnings ESP of -3.13%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Delta carries a Zacks Rank #3, currently.
Highlights of Q4
In the last reported quarter, the company incurred a loss (excluding $1.34 from non-recurring items) of $2.53 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $2.43. However, Delta reported earnings of $1.70 per share (on an adjusted basis) in the year-ago quarter.
Stocks to Consider
Investors interested in the broader Transportation sector may consider Canadian Pacific Railway Limited (CP - Free Report) , Herc Holdings (HRI - Free Report) and Alaska Air Group (ALK - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
Canadian Pacific has an Earnings ESP of +5.41% and is Zacks #3 Ranked, presently. The company will release first-quarter 2021 results on Apr 21.
Herc Holdings has an Earnings ESP of +18.81% and sports a Zacks Rank of 1 at present. The company will release first-quarter 2021 results on Apr 22.
Alaska Air has an Earnings ESP of +3.20% and is currently a Zacks #3 Ranked player. The company will release first-quarter 2021 results on Apr 22.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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What's in the Cards for Delta (DAL) This Earnings Season?
Delta Air Lines (DAL - Free Report) is scheduled to report first-quarter 2021 results on Apr 15, before the market opens.
The company’s earnings lagged the Zacks Consensus Estimate in three of the last four quarters and beat the same in the remaining one. Notably, the Zacks Consensus Estimate for first-quarter bottom line has widened to a loss of $2.79 per share from a loss of $2.63, 60 days ago.
Delta Air Lines, Inc. Price and EPS Surprise
Delta Air Lines, Inc. price-eps-surprise | Delta Air Lines, Inc. Quote
Against this backdrop, let’s discuss the factors that might have impacted Delta’s performance in the March quarter.
Driven by the recent uptick in air-travel demand, passenger revenues at Delta are likely to have been high on a sequential basis in the quarter to be reported. The Zacks Consensus Estimate for the to-be-reported quarter’s passenger revenues indicates an 11.1% increase from the number reported in the December quarter. Moreover, the Zacks Consensus Estimate for traffic (measured in revenue passenger miles) suggests a 27.5% improvement from the December quarter’s reported figure.
Owing to higher traffic, load factor (% of seats filled with passengers) is expected to have improved sequentially in the March quarter. The Zacks Consensus Estimate for the to-be-reported quarter’s load factor is currently pegged at 48%, suggesting growth from 42% reported in the December quarter.
Despite the recent improvement, the picture with respect to air-travel demand is bleak when compared to the year-ago levels. For example, the Zacks Consensus Estimate for passenger revenues implies a 60.1% decline from the number reported in the year-ago quarter. Moreover, the Zacks Consensus Estimate for traffic suggests a 55.1% decrease from the year-earlier quarter’s reported number.
Due to the subdued traffic, load factor is likely to have declined year over year in the March quarter. The Zacks Consensus Estimate for the to-be-reported quarter’s load factor is currently pegged at 48%, indicating a fall from 73% reported in the year-ago quarter.
To mitigate the extreme demand depression, the carrier is trimming its capacity. The Zacks Consensus Estimate for consolidated available seat miles (a measure of capacity) implies a 31.6% slump from the number reported in the year-earlier quarter. Also, the Zacks Consensus Estimate for first-quarter passenger revenues per available seat miles (PRASM: a key measure of unit revenues) is pegged at 7.58 cents, indicating a 41% decline from the figure reported in the year-ago quarter.
The recent increase in fuel price per gallon is expected to have hurt the bottom line in the March quarter. The Zacks Consensus Estimate for the March quarter’s fuel price per gallon (adjusted) is currently pegged at $1.63, hinting at a 13.2% increase the December quarter’s reported figure.
What Does the Zacks Model Unveil?
The proven Zacks model does not predict a bottom-line beat for Delta this time around. Notably, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive earnings surprise. However, this is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Delta has an Earnings ESP of -3.13%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Delta carries a Zacks Rank #3, currently.
Highlights of Q4
In the last reported quarter, the company incurred a loss (excluding $1.34 from non-recurring items) of $2.53 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $2.43. However, Delta reported earnings of $1.70 per share (on an adjusted basis) in the year-ago quarter.
Stocks to Consider
Investors interested in the broader Transportation sector may consider Canadian Pacific Railway Limited (CP - Free Report) , Herc Holdings (HRI - Free Report) and Alaska Air Group (ALK - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
Canadian Pacific has an Earnings ESP of +5.41% and is Zacks #3 Ranked, presently. The company will release first-quarter 2021 results on Apr 21.
Herc Holdings has an Earnings ESP of +18.81% and sports a Zacks Rank of 1 at present. The company will release first-quarter 2021 results on Apr 22.
Alaska Air has an Earnings ESP of +3.20% and is currently a Zacks #3 Ranked player. The company will release first-quarter 2021 results on Apr 22.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>