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With a market cap of $30.6 billion, Delta Air Lines, Inc. (DAL) holds a prominent position in the U.S. aviation market with its Airline and Refinery segments, supported by an extensive global network and diverse service offerings. The airline giant is expected to announce its fiscal Q2 earnings results before the market opens on Thursday, July 11.
Ahead of the event, analysts are expecting DAL to report a profit of $2.39 per share, down 10.8% from $2.68 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the last four quarterly reports. Robust demand in both leisure and business travel, despite inflationary pressures, helped Delta Air Lines surpass the consensus EPS estimate by 25% in the most recent quarter.
For fiscal 2024, analysts expect Delta Air Lines to report EPS of $6.61, up 5.8% from $6.25 in fiscal 2023.
DAL has outperformed the broader markets in 2024, with shares up 17.5% on a YTD basis versus the S&P 500 Index's ($SPX) 14.6% gain and the US Global Jets ETF's (JETS) 2.9% return over the same time frame.
Delta Air Lines' recent surge in stock price is powered by its robust post-pandemic recovery, highlighted by record-breaking Q1 earnings results announced on April 10, which revealed substantial profit and revenue growth. The strong performance in premium travel, increased loyalty program revenues, and reduced dependency on Boeing (BA) models have fueled investor optimism toward the stock.
Analysts' consensus rating on Delta Air Lines stock is bullish, with a "Strong Buy" rating overall. The stock has a unanimous “Strong Buy” rating from all 18 analysts covering it. This configuration is slightly more bullish than three months before, with 17 analysts suggesting a "Strong Buy."
The average analyst price target for DAL is $61.25, indicating a modest potential upside of 29.1% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
