Delta Air Lines Inc (DAL) is set to release its third-quarter earnings report before the market opens on Thursday, Oct. 10. Investors and analysts are closely watching the Atlanta-based airline’s performance, especially as the travel industry continues to recover and evolve.
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Expected Q3 Earnings Report of Delta Air Lines:
Analysts anticipate Delta will report quarterly earnings of $1.51 per share, a significant drop from the $2.03 per share reported in the same period last year. This decline reflects a more challenging operational environment despite a slight uptick in expected revenue. The company is projected to report $14.71 billion in revenue for the third quarter, up slightly from $14.55 billion in the year-ago quarter, according to data from Benzinga Pro. These results come amid Delta’s continued efforts to manage costs and navigate operational disruptions, such as the July outage, which may weigh on overall performance.
Delta has indicated optimism for its full-year earnings, projecting FY24 EPS to meet or exceed the midpoint of its $6-$7 range. Additionally, Delta has forecasted a 4% year-over-year increase in available seat miles (ASMs) for the September quarter, signaling capacity growth amidst the post-pandemic travel surge.
Stock Target Advisor’s Analysis on Delta Air Lines:
According to Stock Target Advisor, Delta’s stock has been performing positively in recent times. With a stock price of $50.98 at the last closing, Delta has posted a capital gain of 41.69% over the past year. The stock is rated as a “Strong Buy” by analysts, with an average target price of $62.53 over the next 12 months.
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Stock Target Advisor’s own analysis of Delta Air Lines is “Neutral,” based on both positive and negative indicators. On the positive side, Delta has shown superior earnings growth in the last five years, placing it in the top quartile among its sector peers. However, the airline has struggled with lower-than-average revenue growth compared to other airlines over the same period.
Conclusion:
As Delta Air Lines prepares to release its Q3 earnings, investors are keen to see how the company is navigating industry challenges, including fuel price fluctuations and operational disruptions. While earnings are expected to be lower than last year, the slight revenue growth and optimism for full-year performance suggest that Delta remains a strong player in the airline industry.
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.
