Delta Air Lines (DAL) is gearing up to release its Q4 earnings on Friday, January 10, 2025. As the aviation giant prepares to unveil its financial performance, investors are keenly anticipating insights into the company’s growth trajectory amid challenging market dynamics.
Is now the time to buy DAL: NYE? Access our full analysis report here, it’s free.
Expected Q4 Earnings Report of Delta Air Lines:
- Q4 Revenue Projections: Analysts predict Delta’s Q4 revenues to reach $14.2 billion, reflecting a year-over-year growth of 4%, aligned with the upper range of the company’s guidance.
- Non-GAAP EPS Forecast: Non-GAAP EPS is projected at $1.76, slightly exceeding the midpoint of management’s guidance at $1.72.
- Historical Revenue Performance:
- Delta has missed revenue estimates in 6 of the last 10 quarters.
- Despite the misses, positive revenue surprises have been significantly higher in magnitude than negative surprises.
- A substantial beat is possible if Q4 results exceed expectations.
- EPS Performance Track Record:
- Delta has beaten EPS estimates in 5 of the last 10 quarters.
- Past results often show double-digit positive surprises during beats.
- Recent misses in Q2 and Q3 FY24 add caution to expectations.
Investing is all about making informed decisions, and now you can do it for less. Get 70% off Stock Target Advisor and start optimizing your portfolio today. Grab your discount now!
Stock Target Advisor’s Analysis on Delta Air Lines
Stock Target Advisor offers a bullish outlook on Delta Air Lines, supported by three positive signals and one negative indicator. Analysts have set an average 12-month price target of USD 71.46, implying a substantial upside from the current price of USD 61.18. Delta has demonstrated superior earnings growth and dividend growth in the past five years, ranking in the top quartile among sector peers.
Despite these strengths, Delta underperforms in median total returns over the past five years. The company’s 1-year capital gain stands at an impressive 44.57%, with a total return of 45.75% in the same period. Analysts widely rate the stock as a “Strong Buy,” with Morgan Stanley and UBS setting ambitious price targets of USD 100 and USD 88, respectively.
Conclusion:
Delta Air Lines’ Q4 earnings report is poised to provide critical insights into its financial health and operational resilience. While historical patterns suggest the potential for positive surprises, the company’s mixed track record warrants cautious optimism.
Explore the ETF of DEL to discover how Delta Air Lines is represented in exchange-traded funds.
A strong performance could reinforce investor confidence and propel the stock closer to its bullish price targets, while any significant shortfalls may weigh on market sentiment. As the release date nears, stakeholders will be closely watching for Delta’s ability to navigate challenges and capitalize on growth opportunities in a dynamic sector.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
