Earnings

Investors Update: Delta Air Lines (NYSE:DAL)

April 11, 2019

Delta Air Lines (NYSE:DAL) spotted trading -4.41% off 52-week high price. On the other end, the stock has been noted 30.02% away from the low price over the last 52-weeks. The stock changed 1.30% to recent value of $58.61. The stock transacted 4368744 shares during most recent day however it has an average volume of 8202.78K shares. The company has 679M of outstanding shares and 676.65M shares were floated in the market.  

Delta Air Lines (NYSE:DAL) announced financial results for the March quarter 2019 and provided its outlook for the June quarter 2019. Highlights of the March quarter 2019 results, including both GAAP and adjusted metrics, are below and incorporated here.

March Quarter Financial Highlights

Adjusted earnings per share were $0.96, reflecting a 28 percent increase year over year on solid core performance and benefit from the early renewal of the American Express agreement.

Total adjusted revenue, which excludes refinery sales, grew 7.5 percent to $10.4 billion with 55 percent from premium products and non-ticket sources.

Total unit revenue, adjusted, increased 2.4 percent driven by double-digit growth in domestic corporate revenue and an approximate one point benefit from the American Express agreement.

Non-fuel unit cost (CASM-Ex) decreased 0.2 percent compared to the prior year period, marking the third consecutive quarter of strong cost performance.

Generated $2.0 billion of operating cash flow and $760 million of free cash flow after investing $1.3 billion into the business, primarily for aircraft purchases and modifications.

Returned $1.6 billion to shareholders, comprised of $1.3 billion of share repurchases and $233 million in dividends.

“Delta is off to a solid start in 2019.  Our March quarter performance demonstrates the power of our growing brand preference, our unmatched competitive advantages, and most importantly the Delta people who are committed to providing the best travel experiences for our customers every day.  I’m pleased to recognize their efforts with $220 million toward next year’s profit sharing,” said Ed Bastian, Delta’s chief executive officer. “With the momentum in our business and our American Express contract renewal, we have increased confidence in achieving our full-year plan of top-line growth, margin expansion and double-digit earnings growth.”

 Its earnings per share (EPS) expected to touch remained 13.90% for this year while earning per share for the next 5-years is expected to reach at 11.81%. DAL has a gross margin of 52.30% and an operating margin of 11.80% while its profit margin remained 8.90% for the last 12 months.  According to the most recent quarter its current ratio was 0.3 that represents company’s ability to meet its current financial obligations. The price moved ahead of 11.03% from the mean of 20 days, 14.13% from mean of 50 days SMA and performed 10.29% from mean of 200 days price. Company’s performance for the week was 1.51%, 14.19% for month and YTD performance remained 15.95%.

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