Delta (DAL) Swings to Q2 Profit But Top Line Miss and Weak Outlook Have Traders Selling
DAL Hot Sheet
Revenue Growth %: +108,545.2%Financial Fact:
Diluted Earnings (Loss) per Share: 0.15
Today's EPS Names:
TARO, BRLI, TLB, More
Delta Air Lines Inc. (NYSE: DAL) announced on Monday its largest quarterly profit in a decade, but the company’s shares slid after it missed sales expectations and also offered a weak outlook amid broad economic concerns.
The world’s largest airline company reported second-quarter earnings of $467 million or 55 cents per share, reversing a loss of $257 million or 31 cents per share in the same quarter last year. Excluding one-time items, the company reported earnings of 65 cents per share in the quarter, 2 cents better than the analyst estimate of 63 cents per share.
Revenue for Delta rose 17 percent from $7 billion last year to $8.17 billion in the latest quarter, although this figured missed the market consensus of $8.27 billion.
"Delta's profit this quarter is our best result in a decade and proof that our plan has positioned us well as the economy begins its recovery," said Richard Anderson, Delta's chief executive officer. "These results would not have been possible without the dedication and determination of Delta people. We're happy to recognize our employees' contributions with $90 million in profit sharing."
The company said that it expects to see double-digit year-over-year unit revenue gains in the third quarter, with mainline capacity up 1 percent to 3 percent.
"We are seeing strong improvements in these early stages of the economic recovery and believe there's room for more revenue growth as the economy continues to stabilize," said Ed Bastian, Delta's president. "We anticipate double-digit year over year unit revenue gains for the September quarter."
Shares of Delta last traded at $11.25, down 4% from Friday's closing price.
The world’s largest airline company reported second-quarter earnings of $467 million or 55 cents per share, reversing a loss of $257 million or 31 cents per share in the same quarter last year. Excluding one-time items, the company reported earnings of 65 cents per share in the quarter, 2 cents better than the analyst estimate of 63 cents per share.
Revenue for Delta rose 17 percent from $7 billion last year to $8.17 billion in the latest quarter, although this figured missed the market consensus of $8.27 billion.
"Delta's profit this quarter is our best result in a decade and proof that our plan has positioned us well as the economy begins its recovery," said Richard Anderson, Delta's chief executive officer. "These results would not have been possible without the dedication and determination of Delta people. We're happy to recognize our employees' contributions with $90 million in profit sharing."
The company said that it expects to see double-digit year-over-year unit revenue gains in the third quarter, with mainline capacity up 1 percent to 3 percent.
"We are seeing strong improvements in these early stages of the economic recovery and believe there's room for more revenue growth as the economy continues to stabilize," said Ed Bastian, Delta's president. "We anticipate double-digit year over year unit revenue gains for the September quarter."
Shares of Delta last traded at $11.25, down 4% from Friday's closing price.
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