Why Delta (DAL) Shares Are Trading Lower Today

What Happened?

Shares of global airline Delta Air Lines (NYSE:DAL) fell 3.8% in the afternoon session after the stock took a breather, pulling back from a strong rally sparked by last week's impressive earnings report. The decline appears to be a case of profit-taking after a significant run-up in the share price. On July 10, Delta reported strong second-quarter financial results that surpassed analyst expectations, with adjusted earnings of $2.10 per share on record revenue. The company also confidently restored its full-year guidance, projecting earnings per share between $5.25 and $6.25. 

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What Is The Market Telling Us

Delta’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 5 days ago when the stock gained 13.3% on the news that the company reported better-than-expected second-quarter earnings, reinstated its full-year guidance, and announced a dividend increase. 

The airline posted record second-quarter revenue and adjusted earnings per share, surpassing Wall Street's expectations. The strong results were driven by resilient demand, particularly in premium and loyalty revenue streams, which grew 5% and 8% respectively. 

Looking ahead, Delta expressed confidence in its business by restoring its full-year financial guidance. The company now expects full-year earnings per share between $5.25 and $6.25 and free cash flow of $3 billion to $4 billion. This optimistic forecast signals management's belief in sustained profitability and operational efficiency for the remainder of the year. Adding to the positive news for shareholders, Delta also announced a 25% increase in its quarterly dividend.

Delta is down 5.5% since the beginning of the year, and at $55.85 per share, it is trading 19.1% below its 52-week high of $69.06 from February 2025. Investors who bought $1,000 worth of Delta’s shares 5 years ago would now be looking at an investment worth $1,953.

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