Delta (DAL) Swings to Q2 Profit But Top Line Miss and Weak Outlook Have Traders Selling
Tweet Send to a FriendGet Alerts DAL Hot Sheet
Price: $18.93 +2.38%
EPS Growth %: +300.0%
Financial Fact:
Amortization of debt discount, net: -45M
Today's EPS Names:
ANF, DXLG, FL, More
EPS Growth %: +300.0%
Financial Fact:
Amortization of debt discount, net: -45M
Today's EPS Names:
ANF, DXLG, FL, More
Trade DAL Now!
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.
You May Also Be Interested In
- Abercrombie & Fitch Co. (ANF) Misses Q1 EPS by 4c; Guides FY Below Views
- UPDATE: Crash in American Electric Power (AEP) & NextEra Energy (NEE) Adds to Jitters
- Marvell Technology Group (MRVL) Tops Q1 EPS by 5c; Issues Solid Outlook
Create E-mail Alert Related Categories
Earnings, Insiders' Blog
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
