Delta Air Lines is scheduled to report third-quarter results before the market opens on Thursday. Here's what you need to know.
PROFIT: The airline is expected to post a profit of $990.2 million, or $1.49 a share, according to the consensus estimate of seven analysts polled by FactSet. That would be down from $1.27 billion, or $1.97 a share, in the same quarter a year earlier.
EARNINGS: Stripping out one-time items, adjusted earnings are expected to be $1.52 a share, according to the projections for 17 analysts surveyed by FactSet.
REVENUE: Quarterly operating revenue is expected to rise to $15.94 billion from $15.68 billion a year earlier, according to estimates from seven analysts polled by FactSet.
The stock has risen 16% since the third quarter started and was recently changing hands at $56.90, down about 6% from where it started the year.
WHAT TO WATCH
--Traffic volumes in September grew faster than seat supply did, a positive indicator for forward pricing trends, TD Cowen analysts said in a recent research note. These positive demand dynamics bode best for Delta and top competitor United Airlines, they said. Investors will be looking to see how those trends are playing out for Delta and its year-end forecasting.
--Overall consumer spending remains strong among higher-earning consumers, which is great for Delta, given that it targets high-end customers, Deutsche Bank analysts said in a recent research note. Those customers, and their outsized wealth creation in recent years, should produce solid profits and generate meaningful free cash flow for Delta, allowing it to make investments and widen its competitive lead, the analysts said. |
