Delta Air Lines Q1 Earnings Preview: Bright Forecast With A Dash Of Boeing Drama, Solar Eclipse Spotlight

Leading airline company Delta Air Lines Inc DAL is set to report first-quarter financial results before market open Wednesday, April 10, 2024.

Here's a look at the key earnings estimates, analyst ratings and key items to watch.

Earnings Estimates: Analysts expect Delta Air Lines to report first-quarter revenue of $12.547 billion, according to data from Benzinga Pro.

The company reported revenue of $12.759 billion in last year's first quarter. Delta has beaten revenue estimates from analysts in over 10 straight quarters.

Analysts expect the airline company to report first-quarter earnings per share of 35 cents, compared to 25 cents per share in last year's first quarter.

The company has beaten earnings per share in four of the last five quarters, including three straight quarters.

Delta recently said it expects first-quarter earnings per share to come in a range of 25 cents to 50 cents. The company has guided for full year earnings per share to be in a range of $6 to $7.

Analyst Ratings: Several analysts increased their price targets on Delta Air Lines ahead of quarterly financial results.

Here are the most recent analyst ratings on Delta Air Lines.

Bank of America: Buy rating, raised price target from $50 to $53.

Morgan Stanley: Overweight rating, raised price target from $77 to $85.

UBS: Initiated with Buy rating, price target $52.

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Key Items to Watch: The airline sector has had an up-and-down 2024 due to concerns over Boeing Co BA airplanes and customer concerns of the safety of airplanes.

Delta shares have been among the better performers in the airline sector in 2024 and a strong earnings report could help continue to the positive momentum.

Comments on the ongoing Boeing struggles could be an item to watch. Delta recently said it expected Boeing 737 Max 10 deliveries to be postponed into 2027, from a previous estimate of 2025. Delta ordered 100 of this aircraft type.

Another item to watch could be overall health of the airline industry with Delta reporting strong March figures and saying it was seeing corporate demand come back.

The solar eclipse on April 8 was also an event highlighted by Delta having a flight that followed the path of totality. While this is only one flight, Delta may have benefitted from other flights that went near the path being booked and seeing strong ticket sales or overall strong travel around this key event.

The U.S. Global Jets ETF JETS is up 11.4% over the last year and up 7.3% year-to-date in 2024. Delta is the largest holding in the airline ETF.

Delta shares meanwhile are up 40.9% over the last year and up 17.2% year-to-date.

DAL Price Action: Delta shares are up 2.26% to $47.10 on Monday versus a 52-week trading range of $30.60.

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Photo: Courtesy Delta