A Glimpse of Delta Air Lines's Earnings Potential

Delta Air Lines DAL is preparing to release its quarterly earnings on Thursday, 2024-10-10. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Delta Air Lines to report an earnings per share (EPS) of $1.55.

Delta Air Lines bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings Track Record

The company's EPS missed by $0.01 in the last quarter, leading to a 3.05% drop in the share price on the following day.

Here's a look at Delta Air Lines's past performance and the resulting price change:

Market Performance of Delta Air Lines's Stock

Shares of Delta Air Lines were trading at $50.62 as of October 08. Over the last 52-week period, shares are up 45.83%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Delta Air Lines

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Delta Air Lines.

Delta Air Lines has received a total of 4 ratings from analysts, with the consensus rating as Buy. With an average one-year price target of $61.5, the consensus suggests a potential 21.49% upside.

Comparing Ratings with Peers

The analysis below examines the analyst ratings and average 1-year price targets of United Airlines Holdings, Southwest Airlines and LATAM Airlines Group, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Buy trajectory for United Airlines Holdings, with an average 1-year price target of $77.5, implying a potential 53.1% upside.
• As per analysts' assessments, Southwest Airlines is favoring an Neutral trajectory, with an average 1-year price target of $27.53, suggesting a potential 45.61% downside.
• The consensus among analysts is an Outperform trajectory for LATAM Airlines Group, with an average 1-year price target of $36.67, indicating a potential 27.56% downside.

Snapshot: Peer Analysis

The peer analysis summary provides a snapshot of key metrics for United Airlines Holdings, Southwest Airlines and LATAM Airlines Group, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Delta Air Lines is positioned in the middle among its peers for revenue growth. It ranks at the bottom for gross profit. In terms of return on equity, Delta Air Lines is at the bottom compared to its peers.

All You Need to Know About Delta Air Lines

Atlanta-based Delta Air Lines is one of the world's largest airlines, with a network of over 300 destinations in more than 50 countries. Delta operates a hub-and-spoke network, where it gathers and distributes passengers across the globe through its biggest hubs in Atlanta, New York, Salt Lake City, Detroit, Seattle, and Minneapolis-St. Paul. Delta has historically earned the greatest portion of its international revenue and profits from flying passengers over the Atlantic Ocean.

Breaking Down Delta Air Lines's Financial Performance

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Delta Air Lines's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 6.93%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Net Margin: Delta Air Lines's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 7.83%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 11.09%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Delta Air Lines's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.74%, the company showcases efficient use of assets and strong financial health.

Debt Management: Delta Air Lines's debt-to-equity ratio is below the industry average at 2.0, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Delta Air Lines visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.