Delta Air Lines Q2 Profit Up, Beats Estimates; Raises Outlook; Stock Climbs – Update

(Adds Outlook, share movement)

Delta Air Lines Inc. (DAL) Thursday said it has raised its full-year earnings outlook.

Following this, the stock is up more than 3% in pre-market trading at $49.50. On Wednesday, the stock it had closed at $47.95, down 1.46%. It has traded in the range of $27.20 – $49.04 in the last 52 weeks.

Earnings per share for the year are now expected in the range of $6-$7, up from the previous outlook of $5-$6. Analysts on average, polled by Thomson-Reuters expect the company to report earnings of $6.15 per share.

The company also raised lower end of the revenue growth outlook and now sees revenue for the full year to grow in the range of 17% – 20%, compared with the previous range of 15% – 20%.

Analysts’ expectation for revenue growth stands at $18.7%.

For the third quarter, Delta expects earnings per share to be in the range of $2.20 – $2.50 on revenue growth of 11% – 14%

Analysts expect the company to report earnings of $2.05 per share on revenue growth of 11.9%.

Q2 Summary:

For the second quarter, Delta Air Lines revealed a profit that increased from last year and beat the Street estimates.

The company’s bottom line totaled $1.83 billion, or $2.84 per share. This compares with $735 million, or $1.15 per share, in last year’s second quarter.

Excluding items, Delta Air Lines Inc reported adjusted earnings of $1.72 billion or $2.68 per share for the period.

Analysts on average had expected the company to earn $2.39 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 12.7% to $15.58 billion from $13.82 billion last year.

Delta Air Lines Inc Q2 earnings at a glance (GAAP) :

-Earnings (Q2): $1.83 Bln. vs. $735 Mln. last year.
-EPS (Q2): $2.84 vs. $1.15 last year.
-Analyst Estimate: $2.39
-Revenue (Q2): $15.58 Bln vs. $13.82 Bln last year.

Next quarter EPS guidance: $2.20 – $2.50
Full year EPS guidance: $6 – $7

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