Delta Air Lines’ (DAL) slightly better metrics in Q1 have driven better-than-expected Q2 earnings-per-share guidance, BofA Securities said in an emailed note to clients Thursday.
Delta on Wednesday reported higher Q1 adjusted EPS and revenue that beat analysts’ estimates and initiated Q2 EPS guidance of $2.20 to $2.50, exceeding BofA’s estimate of $2.12.
The company’s outlook prompted BofA to raise its 2024 EPS estimate to $6.81 from $6.57, according to the note.
The company’s “better unit costs [for Q2] are encouraging and reflect solid operations and an increasing focus on efficiency,” BofA said.
The investment firm raised the airline’s price objective to $55 from $53 and reiterated its buy rating.