Delta Air Lines
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Delta Air Lines met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share grew significantly.
Margins expanded across the board.
Delta Air Lines reported revenue of $9.92 billion. The 10 analysts polled by S&P Capital IQ predicted a top line of $9.99 billion on the same basis. GAAP reported sales were 1.1% higher than the prior-year quarter's $9.82 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.90. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.93 per share. GAAP EPS of $1.23 for Q3 were 89% higher than the prior-year quarter's $0.65 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 47.7%, 2,580 basis points better than the prior-year quarter. Operating margin was 14.7%, 590 basis points better than the prior-year quarter. Net margin was 10.6%, 500 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $8.52 billion. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $36.64 billion. The average EPS estimate is $1.95.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 543 members out of 932 rating the stock outperform, and 389 members rating it underperform. Among 207 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give Delta Air Lines a green thumbs-up, and 96 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Delta Air Lines is outperform, with an average price target of $14.38.
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