Consumer Discretionary

By Callum Keown Delta Air Lines beat earnings expectations in the first quarter and offered upbeat guidance as it flagged continuing strong travel demand. The stock jumped 4.1% ahead of the open Wednesday. The airline reported adjusted earnings per share (EPS) of 45 cents on revenue of $12.6 billion — record first-quarter revenue. Wall Street was expecting earnings of 36 cents per share on revenue of $12.5 billion, according to FactSet estimates. Its second-quarter outlook for EPS of between $2.20 and $2.50 came in above the analysts’ consensus of $2.22. International travel remains strong, while corporate travel demand is accelerating, Delta noted. That’s good news for other large-network airlines — United Airlines stock rose 3.4% and American Airlines was up 2.7% ahead of the open. It’s also a reason to believe Delta can keep outperforming. Despite the earnings beat and impressive guidance, Delta stuck to its full-year outlook for EPS […]

Delta Air Lines Exec Says “Looks Like Industry Capacity Is Reaching A Peak In 2q. So I Think We See A Great Setup For The Back Half Of This Year”; “We Still Have More Debt Than We’re Comfortable With”.

Delta Air Lines Exec Says On Wide Body Jets, Says Co Is Now At Or Above 2019 In Terms Of Annual Utilization.

The following is a summary of the Delta Air Lines, Inc. (DAL) Q1 2024 Earnings Call Transcript: Financial Performance: Delta reported pre-tax earnings of $380 million, a $0.20 improvement from the previous year, and a 6% higher revenue for Q1. Free cash flow was recorded at $1.4 billion, and the return on invested capital was nearly 14%. Delta distributed $1.4 billion amongst its employees in terms of profit-sharing. For the June quarter, Delta expects a revenue growth of 5% – 7%, earnings between $2.20 to $2.50 per share, and a target of mid-teens operating margin. In a bid to reduce its financial risk, Delta plans on reducing its debt, which is currently larger than what the company feels comfortable with. Both the upcoming Paris Olympics and struggles with American Express card acceptance rates in Europe may affect revenue projection. Business Progress: Delta delivered strong operational performance with mainline cancellations down

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target of $55, up $7, is 7.7x our ’25 EPS view (down to $7.16 from $7.41; ’24’s cut to $6.15 from $6.51), below DAL’s historical average. We think a discount is merited due to ongoing issues with Boeing (BA 173 **), causing further delays in new aircraft deliveries for DAL (expected deliveries of 20 737 MAX 10 variants in ’25, now likely delayed to ’27, per DAL). Q1 EPS of $0.45 vs. $0.25, beat consensus by $0.08. Q1 revenues were up 8% Y/Y, driven by its international segment (+12%), while capacity grew 7% Y/Y. DAL reiterated its ’24 outlook (EPS in the range of $6-$7/share; FCF in the range of $3B-$4B). The EIA forecasts WTI to average $84/b in ’24 vs. $78/b in ’23; DAL