Delta Airlines Q2 Earnings Dominate the Competition

Delta Air Lines Inc. released a strong second quarter earnings report this morning, and the market has responded positively by pushing its stock up 1.25%. Delta (NYSE: DAL), the second largest airline in the world, exceeded revenue and EPS expectations. For revenue, the company drew in a record $12.5 billion USD, up 8.7% year-on-year, which amounted to $1.5 billion in income. Delta also returned $497 million to shareholders in Q2, consisting of $268 million in stock buybacks and another $229 million in dividends.

Due to this strong performance, Delta has raised full-year earnings guidance from 6.75 to 7.25, and intends to return another $518 million to investors during Q3. Delta’s adjusted EPS were $2.35 in the second quarter, exceeding expectations, and the company projects EPS between 2.10 and 2.40 by September. A minor point: Delta Cargo was the only problem area. Although it contributes about 3% to total revenue, it’s down 17%, primarily because of lower volumes.

Looking at the air sector as a whole, Delta ranks as the second-largest airline worldwide by customers and revenue, after American Airlines (Nasdaq: AAL), but above Lufthansa (Frankfurt Stock Exchange, FRA:LHA) and United Airlines (Nasdaq: UAL) — they changed their name from United Continental just June 27th. Delta’s market capitalization is $38.9 billion USD, as compared to $14.7 billion for American, $14.1 billion USD for Lufthansa, and $23.5 billion to United.

In growth terms, Delta is smashing the competition, with 20.7% YTD stock growth. American Airlines, by contrast, is up a paltry 2.6% YTD. Lufthansa, consistent with the slowing European economy, is actually down by 24% this year. United is up 6.9% YTD.

Delta’s strong Q2 results this morning therefore exhibit the company’s superior growth strategy versus the competition, and should drive further increases in its stock price today and in the near future.

  1. Patel M. 2 months ago

    If I close my earnings trade in Delta $DAL, does that reduce my net portfolio delta?

  2. David Ali 2 months ago

    $DAL new 3month high, could go more depending on market influence

    • Fred Scott 2 months ago

      $DAL impressive, but how long can they keep this up?

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