We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DAL has a decent earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average beat being 3.02%.
The Zacks Consensus Estimate for first-quarter 2024 earnings has been revised 2.94% downward over the last 60 days.
Given this backdrop, let’s examine the factors likely to have influenced Delta Air Lines’ performance in the to-be-reported quarter.
We expect upbeat passenger volumes to have boosted DAL’s top-line performance in the March quarter. Notably, the majority of passenger revenues are likely to have come from domestic markets. Backed by strong booking trends, the company expects quarterly revenues (adjusted) to be in the top half of the 3-6% increase from the year-ago levels mentioned previously.
Driven by high revenues, management expects the operating margin in the quarter under discussion to be approximately 5%. However, high costs are likely to have hurt the bottom line. We note that DAL is burdened with expenses related to non-fuel unit costs. We expect non-fuel unit cost or cost per available seat mile (CASM: adjusted) to increase 3% from first-quarter 2023 actuals.
Delta Air Lines projects adjusted earnings per share to be between 25 cents and 50 cents for the first quarter of 2024. The midpoint of the guided range is higher than the Zacks Consensus Estimate of 33 cents.
What Our Model Says
Our proven model conclusively predicts an earnings beat for Delta Air Lines 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. This is exactly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Delta Air Lines has an Earnings ESP of +3.32% and a Zacks Rank #3.
Q4 Highlights
Delta reported fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand.
Other Stocks to Consider
Here are a few other stocks from the broader Zacks Transportation sector that investors may consider as well, as our model shows that these, too, have the right combination of elements to beat on their first-quarter 2024 earnings.
Coal revenues are likely to have been high at CSX in first-quarter 2024. The Zacks Consensus Estimate for quarterly earnings has remained stable at 45 cents over the last 60 days. CSX has surpassed the Zacks Consensus Estimate for earnings in two of the preceding four quarters and missed twice, the average beat being 4.14%.
Expeditors International of Washington (EXPD - Free Report) has an Earnings ESP of +0.48% and a Zacks Rank #3. EXPD is scheduled to report first-quarter 2024 earnings on May 7. Lackluster volumes (with respect to air-freight tonnage and ocean container) due to weakening demand and falling rates are likely to have hurt EXPD’s performance in the to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter earnings has been revised 7.08% downward over the last 60 days. EXPD has surpassed the Zacks Consensus Estimate for earnings in only one of the preceding four quarters and missed thrice, the average miss being 3.37%.
Image: Shutterstock
Is a Beat in Store for Delta Air Lines (DAL) in Q1 Earnings?
Delta Air Lines (DAL - Free Report) is scheduled to report first-quarter 2024 results on Apr 10, before market open.
DAL has a decent earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average beat being 3.02%.
Delta Air Lines, Inc. Price and EPS Surprise
Delta Air Lines, Inc. price-eps-surprise | Delta Air Lines, Inc. Quote
The Zacks Consensus Estimate for first-quarter 2024 earnings has been revised 2.94% downward over the last 60 days.
Given this backdrop, let’s examine the factors likely to have influenced Delta Air Lines’ performance in the to-be-reported quarter.
We expect upbeat passenger volumes to have boosted DAL’s top-line performance in the March quarter. Notably, the majority of passenger revenues are likely to have come from domestic markets. Backed by strong booking trends, the company expects quarterly revenues (adjusted) to be in the top half of the 3-6% increase from the year-ago levels mentioned previously.
Driven by high revenues, management expects the operating margin in the quarter under discussion to be approximately 5%. However, high costs are likely to have hurt the bottom line. We note that DAL is burdened with expenses related to non-fuel unit costs. We expect non-fuel unit cost or cost per available seat mile (CASM: adjusted) to increase 3% from first-quarter 2023 actuals.
Delta Air Lines projects adjusted earnings per share to be between 25 cents and 50 cents for the first quarter of 2024. The midpoint of the guided range is higher than the Zacks Consensus Estimate of 33 cents.
What Our Model Says
Our proven model conclusively predicts an earnings beat for Delta Air Lines 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. This is exactly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Delta Air Lines has an Earnings ESP of +3.32% and a Zacks Rank #3.
Q4 Highlights
Delta reported fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis, driven by strong holiday-air-travel demand.
Other Stocks to Consider
Here are a few other stocks from the broader Zacks Transportation sector that investors may consider as well, as our model shows that these, too, have the right combination of elements to beat on their first-quarter 2024 earnings.
CSX Corporation (CSX - Free Report) has an Earnings ESP of +0.64% and a Zacks Rank #3. CSX is scheduled to report first-quarter 2024 earnings on Apr 17. You can see the complete list of today’s Zacks #1 Rank stocks here.
Coal revenues are likely to have been high at CSX in first-quarter 2024. The Zacks Consensus Estimate for quarterly earnings has remained stable at 45 cents over the last 60 days. CSX has surpassed the Zacks Consensus Estimate for earnings in two of the preceding four quarters and missed twice, the average beat being 4.14%.
Expeditors International of Washington (EXPD - Free Report) has an Earnings ESP of +0.48% and a Zacks Rank #3. EXPD is scheduled to report first-quarter 2024 earnings on May 7. Lackluster volumes (with respect to air-freight tonnage and ocean container) due to weakening demand and falling rates are likely to have hurt EXPD’s performance in the to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter earnings has been revised 7.08% downward over the last 60 days. EXPD has surpassed the Zacks Consensus Estimate for earnings in only one of the preceding four quarters and missed thrice, the average miss being 3.37%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.