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.
Delta Air Lines, Inc. (DAL - Free Report) reported second-quarter 2018 earnings per share (excluding 30 cents from non-recurring items) of $1.77, beating the Zacks Consensus Estimate of $1.72. Earnings also increased on a year-over-year basis.
How Was the Estimate Revision Trend?
Investors should note that the earnings estimate revisions for Delta depicted a gloomy picture prior to the earnings release. The stock had seen the Zacks Consensus Estimate for second-quarter earnings being revised 1.1% downward over the last 30 days.
The company however has an impressive earnings history having outperformed the Zacks Consensus Estimate three of the last four quarters with an average beat of 2.8%.
Delta recorded operating revenues of $11,775 million, which beat the Zacks Consensus Estimate of $11,678.8 million. Also, it compared favorably with the year-ago number.
Key Stats to Note: The airline behemoth witnessed a 4.4% rise in consolidated passenger revenue per available seat mile (PRASM: a key measure of unit revenue) in the quarter.
For the third quarter of 2018, the carrier expects earnings per share between $1.65 and $1.85. The carrier anticipates pre-tax margin in the range of 12% to 14% in the quarter. The estimated fuel price, including taxes and refinery impact, is expected in the range of $2.32 to $2.37 per gallon for the third quarter. Total unit revenue, excluding refinery sales, is anticipated to increase in the 3.5-5.5% range in the third quarter. System capacity is expected to be up approximately 3-4% on a year over year basis. Cost per Available Seat Mile, excluding fuel and profit sharing, is expected to be approximately flat in the third quarter.
For the full year, the carrier expects earnings per share in the range of $5.35 - $5.70. Fuel price, including taxes and refinery impact is anticipated to lie between $2.20 and $2.30, while Cost per Available Seat Mile, excluding fuel and profit sharing, is estimated to increase 1-2% year over year in 2018. Meanwhile capacity is projected to expand approximately 3% year over year.
The company’s board approved a 15% hike in dividend to 35 cents per share, payable to shareholders on Aug 16, of record as of Jul 26.
Stock Price: The earnings and revenues beat pleased the investors. Consequently shares of the company were up in pre-market trading at the time of writing.
Check back later for our full write up on this Delta Air Lines earnings report later!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Delta Air Lines (DAL) Beats on Q2 Earnings
Delta Air Lines, Inc. (DAL - Free Report) reported second-quarter 2018 earnings per share (excluding 30 cents from non-recurring items) of $1.77, beating the Zacks Consensus Estimate of $1.72. Earnings also increased on a year-over-year basis.
How Was the Estimate Revision Trend?
Investors should note that the earnings estimate revisions for Delta depicted a gloomy picture prior to the earnings release. The stock had seen the Zacks Consensus Estimate for second-quarter earnings being revised 1.1% downward over the last 30 days.
The company however has an impressive earnings history having outperformed the Zacks Consensus Estimate three of the last four quarters with an average beat of 2.8%.
Delta Air Lines, Inc. Price and EPS Surprise
Delta Air Lines, Inc. Price and EPS Surprise | Delta Air Lines, Inc. Quote
Revenues Better Than Expected
Delta recorded operating revenues of $11,775 million, which beat the Zacks Consensus Estimate of $11,678.8 million. Also, it compared favorably with the year-ago number.
Key Stats to Note: The airline behemoth witnessed a 4.4% rise in consolidated passenger revenue per available seat mile (PRASM: a key measure of unit revenue) in the quarter.
For the third quarter of 2018, the carrier expects earnings per share between $1.65 and $1.85. The carrier anticipates pre-tax margin in the range of 12% to 14% in the quarter. The estimated fuel price, including taxes and refinery impact, is expected in the range of $2.32 to $2.37 per gallon for the third quarter. Total unit revenue, excluding refinery sales, is anticipated to increase in the 3.5-5.5% range in the third quarter. System capacity is expected to be up approximately 3-4% on a year over year basis. Cost per Available Seat Mile, excluding fuel and profit sharing, is expected to be approximately flat in the third quarter.
For the full year, the carrier expects earnings per share in the range of $5.35 - $5.70. Fuel price, including taxes and refinery impact is anticipated to lie between $2.20 and $2.30, while Cost per Available Seat Mile, excluding fuel and profit sharing, is estimated to increase 1-2% year over year in 2018. Meanwhile capacity is projected to expand approximately 3% year over year.
The company’s board approved a 15% hike in dividend to 35 cents per share, payable to shareholders on Aug 16, of record as of Jul 26.
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. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stock Price: The earnings and revenues beat pleased the investors. Consequently shares of the company were up in pre-market trading at the time of writing.
Check back later for our full write up on this Delta Air Lines earnings report later!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>