Global airline Delta Air Lines (NYSE: DAL) will be reporting earnings this Friday before market hours. Here’s what investors should know.
Delta beat analysts’ revenue expectations last quarter, reporting revenues of $15.85 billion, up 12.9% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and EPS guidance for next quarter missing analysts’ expectations significantly. It reported 56.47 billion revenue passenger miles, up 1.4% year on year.
Is Delta a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Delta’s revenue to grow 14.3% year on year, improving from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Delta has a history of exceeding Wall Street’s expectations.
Looking at Delta’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 5.3%, meeting analysts’ expectations, and Nike reported a revenue decline of 1.1%, topping estimates by 1.1%. Carnival’s stock price was unchanged following the results.
Read our full analysis of Carnival’s results here and Nike’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Delta is up 7.4% during the same time and is heading into earnings with an average analyst price target of $81.81 (compared to the current share price of $87.15).
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