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Tale of the Tape

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Delta Air Lines (DAL) Beats on Q3 Earnings
October 13, 2016

DAL

Trades from $3

Delta Air Lines, Inc. (DAL - Free Report) is the one of the largest U.S. airlines and provides scheduled air transportation for passengers and cargo across the globe. The Atlanta, GA based company’s route network is centered on the hub system that it operates at airports in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York – John F. Kennedy International Airport, Salt Lake City, Paris-Charles de Gaulle, Amsterdam and Tokyo-Narita. Delta has reported higher-than-expected earnings in three of the last four quarters with an average beat of 1.69%.

Zacks Rank: Currently, Delta Air Lines has a Zacks Rank #3 (Hold) but that could change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Delta Air Lines’ earnings (excluding special items) of $1.70 per share beat the Zacks Consensus Estimate by over 3%. Earnings, however, declined on a year-over-year basis.

DELTA AIR LINES Price and EPS Surprise

 

DELTA AIR LINES Price and EPS Surprise | DELTA AIR LINES Quote

Revenue: Operating revenues came in at $10,483 million, short of the Zacks Consensus Estimate of $10,595 million. Revenues declined 6% from the year-ago figure mainly due to the power outage suffered by the company in August.

Key Stats to Note: The airline behemoth witnessed a 6.8% decline in consolidated passenger revenue per available seat mile (PRASM: a key measure of unit revenue) in the reported quarter. The metric was mainly hurt due to the power outage. For the fourth quarter of 2016, the carrier expects operating margin in the range of 14% to 16%. The estimated fuel price, including taxes and refinery impact, is expected in the range of $1.60 to $1.65 per gallon for the fourth quarter. System capacity is expected to rise approximately 1% on a year over year basis. Passenger unit revenue in the fourth quarter is projected to decline in the band of 3% to 5%

Check back later for our full write up on this Delta Air Lines earnings report later!


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