Delta Slashes Full-Year EPS Guidance to $5.10-$5.60 on $6B Fuel Cost Surge
DAL sits 44% above its 52-week low of $55.03.
Summary
Delta cut its full-year EPS guidance to $5.10-$5.60 from $6.50-$7.50, citing an additional $6 billion in fuel costs this year. Q3 adjusted EPS of $1.72 missed the $1.77 consensus, and net income fell to $756 million from $1.42 billion a year earlier. Q4 EPS guidance of $1.15-$1.65 brackets the $1.43 FactSet consensus, with revenue expected up about 20%. The company recorded $4.1 billion in adjusted fuel costs in Q3, up 62% year over year, and $500 million higher than July guidance. Shares fell 3.7% premarket to $79.10. This follows the Q3 preview earlier today that flagged rising fuel and operating costs, but the actual results and guidance cut are materially worse than previewed.
At the time of this announcement, DAL was trading at $79.43 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $54B. The 52-week trading range was $55.03 to $95.68. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.