Dahlman Rose is out with its report on Delta Air Lines DAL after Delta reported 4Q10 EPS below Dahlman Rose and consensus estimates.
In a note to clients, Dahlman Rose writes, "Delta Air Lines reported EPS excluding items of $0.19, below our forecast of $0.26 and the consensus estimate of $0.24. The operational miss was due to higher jet fuel costs and a $45 million impact from the blizzard at the end of December. Total revenue in the quarter grew by 14% to $7.8 billion in the quarter, while operating expenses increased by 9%, implying margins of 3.8%. Jet fuel costs continued to trend higher, up by 13% due to an increase of 14% in jet fuel per gallon to $2.47. We maintain our Buy rating on Delta credit due to management's focus on debt reduction. We recommend investors Buy the 11.75% second-lien notes over the 9.5% first-lien notes due to significant yield pickup (YTW=7.0%).
Dahlman Rose has a $16 price target on DAL.
DAL is trading pre-market at $11.85, up 1.26% from yesterday's close.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in