Delta stock slides on Q3 profit miss, full-year outlook cut

Investing.com -- Delta Air Lines shares fell more than 2% in premarket trading Friday after the carrier missed third-quarter profit estimates and slashed its full-year profit outlook.

Delta reported third-quarter adjusted earnings per share of $1.72, below the $1.92 analysts expected. Adjusted revenue was $17.6 billion, broadly in line with the consensus.

"Demand remains strong, supported by consumers’ growing preference for experiences and travel, with air travel continuing to be one of the best values in the consumer economy," said CEO Ed Bastian.

Passenger revenue was $15.53 billion and cargo revenue was $301 million. Passenger load factor was 86%, with revenue passenger miles of 68.13 billion on capacity of 79.29 billion available seat miles. Yield per passenger mile was 22.80 cents, and adjusted fuel expense was $4.1 billion.

Adjusted operating income was $1.7 billion, a 9.4% operating margin, and pre-tax income was $1.5 billion, an 8.5% pre-tax margin.

For the fourth quarter, the airline guided for earnings per share of $1.15 to $1.65, with a midpoint of $1.40 that is roughly in line with the $1.42 consensus. The carrier expects revenue growth of about 20% from a year earlier and an operating margin of 7% to 9%.

For the full year, Delta expects earnings per share of $5.10 to $5.60, down from $6.50 to $7.50 previously, and missing the $5.46 consensus estimate at the midpoint.

Original Article

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