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  • Writer's pictureKumar

Does $DAL Delta Airlines Have Swings For the Upcoming Earnings?

Delta Air Lines, Inc. (NASD: DAL)

Delta Air Lines, Inc. is expected* to report earnings on 01/14/2020 before the market open.

  • Consensus EPS Estimate for FQ4 2019 is $1.38 (9.46% YoY)

  • Consensus Revenue Estimate for FQ4 2019 is $11.37B (5.81% YoY)

  • EPS Revisions the past 90 days include 3 upward and 13 downward

  • Revenue Revisions the past 90 days include 6 upward and 3 downward

$DAL is one of the leading commercial airlines of the United States, headquartered in Atlanta, Georgia. They provide transport services across the world for both passengers and cargo. The company operates a vast network of flight routes with strategic hubs located throughout the main markets. Delta Air Lines generates more than $46 billion in annual revenues. Airlines are somewhat of a unique business, as they are one of the most cyclical and economically sensitive.

Airlines are tied closely with global GDP data because of how global travel directly impacts the profitability of these companies. Airlines are also typically hit hard during recessions for the same reasoning. With the prolonged economic expansion that has proceeded the recession in 2008-2009, the past 10 years have featured strong growth for Delta. Over this time frame, revenues have grown at a CAGR of 5.17% and EBITDA at a rate of 20.56%. Dividend Growth Stocks Of Tomorrow: Delta Air Lines, Inc.

The following points made in the Forbes article A Decade After Bankruptcy And Merger, Delta Is On Top And Pulling Away From The Pack make the future look promising for $DAL.

· Arguably the most-preferred airline among heavy-duty U.S. business travelers (who typically pay a lot more for their tickets than average Joes) and even some leisure travelers willing to pay a bit more for a better travel experience

· Easily the most profitable domestic service provider among the Big Three (which includes rival American and United) and closing the gap on domestic profitability leader Southwest

· Strategically the most-well positioned carrier thanks to its rekindled domestic strength and its strong-and-getting stronger international operations driven by its own service growth and, significantly, it’s strong partnerships with a long list of international partners including AirFrance-KLM, Virgin Atlantic, Korean Airlines and, most surprisingly, LATAM, South America’s top group of carriers, which Delta in September invested $1.9 billion into in order to steal the group away from its previous long-time alliance partner and Delta rival American. Delta’s proposed new joint venture with LATAM, a holding company for the five large carriers that dominate the intra-South American air travel market and the domestic markets of five of the biggest South American national economies, is awaiting government approval

· Surprisingly, a new reputation for being the most innovative U.S. carrier in terms of breaking from the pack to find new ways to generate more revenue per passenger mile flown while simultaneously delivering an improved passenger experience that, per the results, seems to justify that unit revenue premium.

Delta appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

The stock has increased by approx. $10 dollars or 20% over the past 12 months though it is range-bound. We believe a long-term hold for $DAL would add a solid airline to your portfolio.


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