Delta Air Lines ( NYSE: DAL ) is scheduled to announce Q2 earnings results on Wednesday, July 13th, before market open.
The consensus EPS Estimate is $1.65 (+254.2% Y/Y) and the consensus Revenue Estimate is $13.4B (+87.9% Y/Y).
Earnings history : The company has topped consensus past four quarters. After Q1 beat, the company guided Q2 Total Revenue growth in the range of 93% to 97% vs. 2Q19; capacity of ~84% vs. 2Q19; Adjusted Net Debt of ~$20B down from Q1 net debt of $20.9B; operating margins to be between 13% and 14%; Adjusted operating income per available seat mile of around 2.70 cents, much higher than the industry average of around 1.68 cents.
Over the last 2 years, DAL has beaten EPS estimates 63% of the time and has beaten revenue estimates 75% of the time.
Over the last 3 months, EPS estimates have seen 12 upward revisions and 0 downward. Revenue estimates have seen 5 upward revisions and 0 downward.
Analyst Rating: Sheila Kahyaoglu, an analyst at Jefferies published a 2Q preview report for all major airlines. The analyst maintained a Buy rating with $50 price target for Delta Airlines, sees 70.7% upside potential.
Kahyaoglu said, “Similar to business jets, airlines cannot seem to get their day in the sun. With positive price momentum Q2 unit revs should be better. However, concerns linger on what drives demand in the fall given a weakening consumer and limited visibility. We are most positive into the Q on DAL as premium offering provides more ability to drive short-term yields.”
Wall Street Analysts view the stock as a Strong Buy , based on 13 of 20 analysts’ ratings of Strong Buy; 5 analysts ratings of Buy and the other 2 rates the stock at Hold.
SA Quant rating systems gives the stock Buy rating .
On YTD basis, stock has underperformed the broader market index:
The NYSE Arca Airline index has slipped 25% since late May in contrast to 18% rise in U.S. passenger traffic this summer from a year ago.
With crew shortages, inflation at a 40-year high and surging air fares due to rise in fuel cost, some analysts warns slowdown in the sector in 2H22.
Earlier today, peer American Airlines ( AAL ) announced Q2 preliminary revenue growth of 12% vs. 2Q19. The airlines sees capacity decline of 8.5% vs. 2Q19; TRASM to be up approximately 22.5% vs. 2Q19 and CASM to be up approximately 12% vs. 2Q19.
A quick look at SA Quant Rating's top airline stocks .
For further details see:
What to expect from Delta Air Lines' Q2 earnings amid crew shortages, high fuel prices and inflation?