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What's in the Cards for Delta Air (DAL) in Q1 Earnings?

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Delta Air Lines (DAL - Free Report) is scheduled to report first-quarter 2023 results on Apr 13, before market open.

Let’s see how things are shaping up for Delta this earnings season.

Q1 Expectations

The Zacks Consensus Estimate for Delta’s first-quarter 2023 revenues is pegged at $12.58 billion, indicating 34.58% growth year over year. The top line is likely to have been aided by an uptick in air-travel demand in the United States. Notably, the majority of passenger revenues are coming from the domestic markets. For the first quarter of 2023, the carrier expects total revenues to increase in the range of 14-17% from first-quarter 2019 actuals.

On the flip side, fuel expenses are likely to have hurt the bottom line in the first quarter. Notably, the Zacks Consensus Estimate for first-quarter 2023 earnings has been revised downward by 25.6% in the past 90 days. Management expects first-quarter 2023 earnings per share in the band of 15-40 cents. The Zacks Consensus Estimate of 32 cents lies within the guidance.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Delta this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Delta has an Earnings ESP of -10.60% and a Zacks Rank #3.

Delta Air Lines, Inc. Price and EPS Surprise

 

Delta Air Lines, Inc. Price and EPS Surprise

Delta Air Lines, Inc. price-eps-surprise | Delta Air Lines, Inc. Quote

 

Highlights of Q4

Delta's fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.

Delta reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million and increased more than 41.87% on a year-over-year basis.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these too have the right combination of elements to beat on their first-quarter 2023 earnings.

Ryder System, Inc. (R - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #1. R will release results on Apr 26. You can see the complete list of today’s Zacks #1 Rank stocks here.

R delivered a trailing four-quarter earnings surprise of 21.81%, on average. The Zacks Consensus Estimate for R’s first-quarter 2023 earnings has improved 7.2% in the past 90 days.

Kirby Corporation (KEX - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank #3. KEX will release results on Apr 27.

KEX has an expected earnings growth rate of 68.57% for the current year. KEX delivered a trailing four-quarter earnings surprise of 3.78%, on average.

KEX has a long-term earnings growth rate of 12%.

Landstar System, Inc. (LSTR - Free Report) has an Earnings ESP of +0.36% and a Zacks Rank #3. LSTR will release results on Apr 26.

Landstar delivered a trailing four-quarter earnings surprise of 0.21%, on average. Landstar has a long-term earnings growth rate of 12%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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