Delta Air Lines Analysts Boost Their Forecasts After Upbeat Earnings

Delta Air Lines, Inc. DAL reported better-than-expected first-quarter earnings.

Delta reported a first-quarter 2024 operating revenue growth of 8% year-over-year to $13.748 billion and adjusted operating revenue of $12.563 billion (+6% YoY), beating the consensus of $12.57 billion. Adjusted EPS was 45 cents, above the consensus of 36 cents, according to data from Benzinga Pro.

“We expect to repay at least $4 billion of debt this year and are on track to improve full year leverage. Our commitment to strengthening the balance sheet was recognized this quarter with positive outlook updates from Moody’s and Fitch, marking our continued progress towards an investment grade rating,” commented Dan Janki, Delta’s chief financial officer.

On a non-GAAP basis, Delta expects second-quarter revenue growth of 5%-7%, EPS of $2.20 – $2.50 versus $2.25 estimate, and operating margin of 14%-15%. On a non-GAAP basis, DAL expects 2024 EPS of $6-$7 versus the $6.46 estimate, free cash flow of $3 billion-$4 billion, and Adjusted Debt to EBITDAR of 2x – 3x.

Delta Air shares fell 2.3% to close at $46.24 on Wednesday.

These analysts made changes to their price targets on Delta Air following earnings announcement.

• Deutsche Bank raised the price target on Delta Air from $50 to $60. Deutsche Bank analyst Michael Linenberg maintained a Buy rating.
• B of A Securities boosted the price target on Delta Air from $53 to $55. B of A Securities analyst Andrew Didora maintained a Buy rating.
• Susquehanna increased the price target on Delta Air from $54 to $55. Susquehanna analyst Christopher Stathoulopoulos maintained a Positive rating.

Read This Next: Wall Street's Most Accurate Analysts' Views On 3 Health Care Stocks With Over 3% Dividend Yields