Delta Guides FY Adj EPS to $6.50-$7.50, Topping Consensus
DAL sits 79% above its 52-week low of $49.83.
Summary
Delta Air Lines issued FY adjusted EPS guidance of $6.50 to $7.50, well above the $6.10 consensus, marking its first forward profit outlook since a Q1 loss and operational headwinds including capacity cuts, fuel cost spikes, and a refinery fire. The company reported Q2 adjusted operating income of $1.6 billion with an adjusted operating margin of 8.8%, and expects Q3 adjusted operating margin of 11% to 13%. Management expressed confidence in its long-term framework, targeting a path to mid-teens margins and improved return on invested capital. The guidance signals an expected sharp recovery, likely driven by easing fuel prices and summer demand, and the stock should react positively as the market prices in the improved earnings trajectory.
At the time of this announcement, DAL was trading at $89.00 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $58.5B. The 52-week trading range was $49.83 to $95.68. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.