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 (DAL) Expects 90% Decline in Q2 Revenues, Shares Down
Read MoreHide Full Article
Delta Air Lines Inc (DAL - Free Report) anticipates second-quarter 2020 revenues to decline 90% from the year-ago period, thanks to coronavirus-induced travel demand woes. The Zacks Consensus Estimate for the same indicates an 88.6% drop. Following this bleaker-than-expected forecast for the second quarter, shares of the company slipped more than 7% at the close of business on Jun 10.
System-wide capacity is expected to be down 85% year over year in the current quarter. On a positive note, Delta reduced its operating expenses by more than 50% for the June quarter. This, coupled with “recent improvement in net sales and stabilization in refund requests”, is anticipated to reduce the carrier’s average daily cash outflow to approximately $40 million by the end of June from roughly $100 million per day at the end of March. With modest improvement in demand, particularly domestic leisure travel demand and greater cost cuts, the airline hopes to reduce its average daily cash outflow to zero by the end of this year.
Delta anticipates the demand-recovery environment to be better on the domestic front than in international markets. As a result, the carrier added 100 additional domestic flights in June. It plans to continue adding flights in the third quarter as demand increases.
As for cash reserves, since March, Delta has raised more than $10 billion in financing through various means, including the Payroll Support Program under the CARES Act. The company expects to end 2020 with $10 billion in cash, cash equivalents, short-term investments and borrowing capacity under its revolving credit facilities.
The Zacks Consensus Estimate for Scorpio Tankers’ current-year earnings has been revised upward in excess of 100% in the past 60 days.
The Zacks Consensus Estimate for Teekay Tanker’s current-year earnings has been revised 35.6% upward in the past 60 days.
The Zacks Consensus Estimate for Frontline’s current-year earnings has been revised 17.1% upward in the past 60 days.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Shutterstock
Delta (DAL) Expects 90% Decline in Q2 Revenues, Shares Down
Delta Air Lines Inc (DAL - Free Report) anticipates second-quarter 2020 revenues to decline 90% from the year-ago period, thanks to coronavirus-induced travel demand woes. The Zacks Consensus Estimate for the same indicates an 88.6% drop. Following this bleaker-than-expected forecast for the second quarter, shares of the company slipped more than 7% at the close of business on Jun 10.
System-wide capacity is expected to be down 85% year over year in the current quarter. On a positive note, Delta reduced its operating expenses by more than 50% for the June quarter. This, coupled with “recent improvement in net sales and stabilization in refund requests”, is anticipated to reduce the carrier’s average daily cash outflow to approximately $40 million by the end of June from roughly $100 million per day at the end of March. With modest improvement in demand, particularly domestic leisure travel demand and greater cost cuts, the airline hopes to reduce its average daily cash outflow to zero by the end of this year.
Delta anticipates the demand-recovery environment to be better on the domestic front than in international markets. As a result, the carrier added 100 additional domestic flights in June. It plans to continue adding flights in the third quarter as demand increases.
Delta Air Lines, Inc. Price
Delta Air Lines, Inc. price | Delta Air Lines, Inc. Quote
As for cash reserves, since March, Delta has raised more than $10 billion in financing through various means, including the Payroll Support Program under the CARES Act. The company expects to end 2020 with $10 billion in cash, cash equivalents, short-term investments and borrowing capacity under its revolving credit facilities.
Zacks Rank & Key Picks
Delta carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Scorpio Tankers Inc. (STNG - Free Report) , Teekay Tankers Ltd. (TNK - Free Report) and Frontline Ltd (FRO - Free Report) . While Frontline sports a Zacks Rank #1 (Strong Buy), Scorpio Tankers and Teekay Tankers carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Scorpio Tankers’ current-year earnings has been revised upward in excess of 100% in the past 60 days.
The Zacks Consensus Estimate for Teekay Tanker’s current-year earnings has been revised 35.6% upward in the past 60 days.
The Zacks Consensus Estimate for Frontline’s current-year earnings has been revised 17.1% upward in the past 60 days.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>