Global airline Delta Air Lines (NYSE: DAL) will be reporting results this Friday before market open. Here’s what to look for.
Delta beat analysts’ revenue expectations last quarter, reporting revenues of $19.76 billion, up 18.7% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and full-year EPS guidance exceeding analysts’ expectations. It reported 66.77 billion revenue passenger miles, flat year on year.
Is Delta a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Delta’s revenue to grow 16.2% year on year, improving from the 6.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Delta has a history of exceeding Wall Street’s expectations.
Looking at Delta’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 3.5%, beating analysts’ expectations by 1.1%, and Levi's reported revenues up 4.3%, in line with consensus estimates. Carnival traded up 10.8% following the results.
Read our full analysis of Carnival’s results here and Levi’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.7% on average over the last month. Delta is up 5.3% during the same time and is heading into earnings with an average analyst price target of $101.27 (compared to the current share price of $83.16).
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