Why Delta Air Lines Soared Higher Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Delta Air Lines (NYSE: DAL  ) rose 10.5% today after the company released earnings.

So what: First-quarter revenue rose 1% to $8.5 billion and met expectations from Wall Street. The company posted earnings of $7 million, or $0.01 per share, but when adjusted for one-time items the profit was $0.10 per share, four cents ahead of estimates.  

Now what: Investors were concerned that sequester cuts would eat into revenue, but the impact hasn't been very meaningful. Delta isn't terribly bullish on the next few months because of uncertainty, but leisure traffic appears to be strong, and that will drive results for the rest of 2012. I'm just not impressed enough with a $0.10-per-share profit to buy today, and I'll be looking for more revenue growth before getting bullish.

Interested in more info on Delta Air Lines? Add it to your watchlist by clicking here.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2380901, ~/Articles/ArticleHandler.aspx, 10/26/2014 3:43:42 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement