Earnings Preview: Delta Air Lines

| About: Delta Air (DAL)

Delta Air Lines (NYSE:DAL) is expected to report Q4 earnings on Tuesday, January 26 before the market open with a conference call scheduled for 9:00 am ET.


Analysts are looking for EPS of (24c) on revenue of $6.86B. The consensus range is (31c)-(16c) for EPS, and $6.48B-$7.57B for revenue, according to First Call. Delta missed Q3 EPS estimates, the first time in three quarters, but beat on revenue. Investors will be looking for the company to beat on the bottom line this quarter. On its Q3 conference call, Delta noted that the revenue environment will be “tough” going forward, and forecast Q4 system capacity down 9%-11%. October, November, and December traffic were down 6.5%, 7.1%, and 7.5% respectively.

Analyst Views

On December 15, Delta’s target price was raised to $18 from $11 at Jesup & Lamont with a Buy rating. The stock has doubled since November, moving from $6.50 to $13.00+ as of last week. Senior executives have recently sold a combined $2.9M in shares, a good indicator that the stock may have reached a near term peak. With such a large move in the stock, it may be difficult to propel the share price higher from these levels without stellar earnings.