2023-06-27 07:51:10 ET
Delta Air Lines ( NYSE: DAL ) rose in early trading on Tuesday after releasing information in advance of the company's investor day event.
The airline company said one of the key investor takeaways is that there is a constructive industry backdrop with structural demand tailwinds and multi-year supply constraints. Delta Airlines ( DAL ) sees unique opportunities to grow earnings by leveraging brand strength, competitive advantages, and digital transformation. Delta ( DAL ) said it is building momentum into 2024 with capacity growth normalizing and the carrier's best-in-class operational reliability being restored. The company is also looking to optimize the network and increase fleet utilization. A favorable trend identified in the presentation is that corporate travel budgets continue to improve.
As for guidance, Delta Air Lines ( DAL ) said it continues to sees Q2 revenue of +17% to +18% and Q2 EPS of $2.25 to $2.50 vs. $2.22 consensus. For the full year, free cash flow of $3B and ROIC higher than 13% are expected. Delta ( DAL ) also expects FY23 EPS at the top end of the prior range of $5 to $6 per share. For FY24, EPS of over $7.00 is anticipated vs. $7.12 consensus and free cash flow is seen being over $4B.
Shares of Delta Air Lines ( DAL ) rose 1.33% in premarket trading to $43.71 vs. the 52-week range of $27.20 to $43.58. The stock is up more 32% on a year-to-date basis.
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Delta Air Lines rallies after setting strong guidance