Delta Air Lines (DAL): Cutting Estimates

UBS analyst, Daryl Genovesi, cut estimates on Delta Air Lines (NYSE: DAL). The guidance update implies Q2 EPS at ~$1.40 including $0.35-0.40 hit from early settlement of 2H fuel hedge loss. Ex settlement, result appears to be ~$0.12 below the UBS estimate with variance primarily attributable to a weaker top line.

Amex growth appears more back-end loaded at ($0.07) while ~5% unit revenue (PRASM) decline drives another nickel EPS downside. We have pushed some of the Amex growth out to 2017, which drives a ~5% reduction to our 2016 EPS estimate while the 2017 estimate is unchanged.

No change to Neutral rating or price target of $49.

For an analyst ratings summary and ratings history on Delta Air Lines click here. For more ratings news on Delta Air Lines click here.

Shares of Delta Air Lines closed at $35.62 yesterday.

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