Delta Q2 Profit Drops 25% Despite 19% Revenue Jump; Guides FY EPS Above Consensus
DAL sits 81% above its 52-week low of $49.83.
Summary
Delta's Q2 GAAP EPS fell to $2.44 from $3.27 a year ago, a 25% decline, even as revenue rose 18.7% to $19.75B. Adjusted EPS was $1.56. The profit retreat reflects cost pressures including record fuel costs, with fuel guidance spiking to $4.30/gal in May, and operational disruptions such as a refinery fire at its Monroe Energy subsidiary in late June. Despite the earnings drop, Delta issued full-year EPS guidance of $6.50–$7.50, topping consensus, and set next quarter's EPS view at $2.00–$2.50. The company has been grappling with capacity cuts, crew shortages, and rising fuel costs, though a dividend hike in June and Berkshire's $3B stake in May provide some offsetting positives.
At the time of this announcement, DAL was trading at $90.25 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 negative market sentiment and an importance score of 8 out of 10. Source: dpa-AFX.