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The Key Takeaways
- Delta Air Lines plans to announce its earnings for the fourth quarter before Friday’s opening bell.
- All 13 analysts tracked by Visible Alpha rate Delta's stock as a "buy," with an average price target predicting gains of 30%.
- Delta's revenue and adjusted net income are each expected to have risen year-over-year.
Analysts expect Delta Air Lines to announce earnings before the opening of Friday’s markets for its fourth fiscal quarter 2024.
Visible Alpha tracked 13 analysts, and all of them maintained a positive outlook on the airline. “buy” rating on Delta stock. Analysts have set an average target price of $76.85, which is a 30% increase from the closing level on Friday of $59 for this stock.
Airline revenue is forecast to be $14.87billion in the fourth quarter. That’s an increase of about 4.6% over the same period last year. However, net income will fall by 45%, to $1.12billion, from $2.04billion a few years ago.
Delta’s net income for the fourth quarter of 2023 was boosted due to a favorable adjustment in the value the airline’s investments. Its stake in Wheels Up’s (UP) service, which provides private air travel services to individuals and small groups, became worth more thanks to a rise in its share price during that period. Delta’s adjusted income, after accounting for value changes, was $826m a year earlier, and will likely have increased to $1.15bn.
Premium Products Driving Delta's Plans for 2025 and Beyond
Delta’s Investor day, held in November 2011, stated that the rising demand of premium seats across generations has led the airline to be confident about its future revenue growth.
Delta expects its revenue and earnings-per-share (EPS) will rise over the next few years, as it expands its premium product line and improves its profit margins.
CrowdStrike has also been involved in a legal dispute with Delta (CRWD). The airline filed a suit late last season seeking damages after a CrowdStrike software update caused a Windows outage that cost $500 million and resulted thousands of Delta flights to be canceled. CNBC reported in July that CrowdStrike had claimed to be not responsible for Delta’s handling the outage. They have also sought dismissal of lawsuit by citing clauses in the contract that limit liability and damages.
The airline's stock has risen nearly 50% over the past 12 months.
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