Delta Air Lines Earnings: What To Look For From DAL

Global airline Delta Air Lines (NYSE:DAL) will be announcing earnings results tomorrow before the bell. Here’s what investors should know.

Delta Air Lines beat analysts’ revenue expectations by 4.5% last quarter, reporting revenues of $15.56 billion, up 9.4% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and revenue guidance for next quarter exceeding analysts’ expectations. It reported 60.39 billion revenue passenger miles, up 4.7% year on year.

Is Delta Air Lines a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Delta Air Lines’s revenue to grow 1.1% year on year to $13.89 billion, slowing from the 7.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.44 per share.

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 Air Lines has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.7% on average.

Looking at Delta Air Lines’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 7.5%, beating analysts’ expectations by 0.9%, and Nike reported a revenue decline of 9.3%, topping estimates by 2.3%. Carnival traded up 1.1% following the results while Nike was down 5.4%.

Read our full analysis of Carnival’s results here and Nike’s results here.

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