Delta Air Lines
The 10-second takeaway
For the quarter ended June 30 (Q2), Delta Air Lines met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Revenue details
Delta Air Lines notched revenue of $9.73 billion. The 11 analysts polled by S&P Capital IQ anticipated a top line of $9.68 billion on the same basis. GAAP reported sales were 6.3% higher than the prior-year quarter's $9.15 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.69. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.67 per share. GAAP EPS were -$0.20 for Q2 against $0.23 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 15.5%, 480 basis points worse than the prior-year quarter. Operating margin was 3.4%, 340 basis points worse than the prior-year quarter. Net margin was -1.7%, 390 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $10.05 billion. On the bottom line, the average EPS estimate is $1.12.
Next year's average estimate for revenue is $36.69 billion. The average EPS estimate is $2.24.
Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 548 members rating the stock outperform, and 391 members rating it underperform. Among 212 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give Delta Air Lines a green thumbs-up, and 101 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 $15.93.
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