Global airline Delta Air Lines (NYSE: DAL) will be reporting earnings this Wednesday morning. Here’s what you need to know.
Delta beat analysts’ revenue expectations last quarter, reporting revenues of $16 billion, up 2.9% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but EPS guidance for next quarter missing analysts’ expectations. It reported 59.86 billion revenue passenger miles, flat year on year.
Is Delta a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Delta’s revenue to grow 7.5% year on year, improving from the 2.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Delta has a history of exceeding Wall Street’s expectations.
Looking at Delta’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 6.1%, meeting analysts’ expectations, and Nike reported flat revenue, in line with consensus estimates. Carnival traded down 5.2% following the results while Nike was also down 15.5%.
Read our full analysis of Carnival’s results here and Nike’s results here.
Investors in the consumer discretionary segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Delta is up 10.2% during the same time and is heading into earnings with an average analyst price target of $79.45 (compared to the current share price of $66.75).
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