Delta Air Lines
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Delta Air Lines met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Delta Air Lines reported revenue of $8.60 billion. The 10 analysts polled by S&P Capital IQ expected sales of $8.61 billion on the same basis. GAAP reported sales were 2.4% higher than the prior-year quarter's $8.40 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 $0.28. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.28 per share. GAAP EPS of $0.01 for Q4 were 98% lower than the prior-year quarter's $0.50 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 18.7%, 450 basis points worse than the prior-year quarter. Operating margin was 5.5%, 420 basis points worse than the prior-year quarter. Net margin was 0.1%, 500 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $8.56 billion. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $37.74 billion. The average EPS estimate is $2.57.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 550 members out of 933 rating the stock outperform, and 383 members rating it underperform. Among 217 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 132 give Delta Air Lines a green thumbs-up, and 85 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 $14.45.
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