Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
Login Archives Your Team About Us FAQ
[mmpazkzone name="azk58712-mobile-nav" network="9794" site="307044" id="222451" type="5"]
  • Subscribe
Enter stock ticker or keyword
×
[mmpazkzone name="azk58712-mobile-sticky" network="9794" site="307044" id="222451" type="5"]
Join 100,000+ Like-Minded Investors Today
Twitter
Tags: Stocks
Stocks: DAL

The Biggest Delta Earnings Figures Driving the Stock

By Diane Alter, Contributing Writer, Money Morning • January 12, 2017

Start the conversation

Leave a Reply Click here to cancel reply.

You must be logged in to post a comment.

Delta earnings

Delta earnings were released this morning (Thursday) and shares of Delta Air Lines Inc. (NYSE: DAL) are down 3% in early trading today after the company posted a 36.5% drop in Q4 profit.

Here are the other key details of the Delta earnings report...

Delta posted earnings per share (EPS) of $0.82, matching consensus estimates. However, net income fell to $622 million from $980 million in the same quarter a year ago. Delta blamed the profit slump on a recent agreement inked with its 13,000 pilots, giving them a 30% raise by 2019. The four-year deal was ratified on Dec. 1 and is retroactive to Jan. 1, 2016.

TOXIC STOCK ALERT

These "toxic stocks" belong nowhere near your portfolio - dump them today.

Watch Now

TOXIC STOCK ALERT

These "toxic stocks" belong nowhere near your portfolio - dump them today.

Watch Now

Meanwhile, operating revenue fell to $9.46 billion from $9.50 billion. That was slightly above the analysts' average estimate of $9.40 billion.

On a bright note, Delta said it should see profit margins begin to expand in the second half of this year. The airline carrier expects passenger revenue will either be flat or climb as much as 2% in Q1 2017. That would mark the end of a two-year decline in that key metric.

Delta stock traded as high as $52 in today's morning session - just shy of its 52-week high of $52.76 - before getting dragged down with the overall market.

While Delta stock is dropping today, airline stocks have soared since the election. Here's why...

Delta Earnings Send DAL Lower, but Airline Stocks Still Strong

Airline stocks are up 25% since Election Day on hopes of improved economic growth, job creation, and tax cuts that will put more money in consumers' pockets.

Delta CEO Ed Bastian told CNBC today that increased consumer confidence since Donald Trump's win can be counted in the carrier's bottom line. Bastian said there are actually pennies in the airline's earnings that can be credited to the buoyant mood among Americans and their feelings about the economy since Trump's victory.

HIDDEN PORTFOLIO POISON

These 19 stocks are like poison for portfolios - and far too many investors are holding them without even knowing.

Watch Now

HIDDEN PORTFOLIO POISON

These 19 stocks are like poison for portfolios - and far too many investors are holding them without even knowing.

Watch Now

"Our new president-elect ran on a campaign of protecting U.S. jobs and enforcing U.S. trade treaties," Bastain said. "We don't think there's a more important industry that has been violated with respect to trade treaties, and the potential loss of jobs."

Since 2004, the governments of Qatar and the UAE have provided $42 billion in subsidies and other unfair benefits to Qatar Airways, Etihad Airways, and Emirates, trade group Partnership for Open & Fair Skies reports.

Trump gets some credit for the sector's rise since November - but he does not get all of it...

The sector took off in November when 13F filings revealed Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK.A) bought shares in American Airlines Group Inc. (Nasdaq: AAL), United Continental Holdings Inc. (NYSE: UAL), Southwest Airlines Co. (NYSE: LUV), and Delta.

Buffett's move into airlines was a big surprise. Buffett has avoided the industry for decades. His $358 million investment in preferred shares of U.S. Airways in 1989 quickly fell in value. By 1995, Berkshire had written down the investment to $89.5 million, just $0.25 on the dollar from the original amount.

WORST STOCKS FOR 2021

Wall Street insider Shah Gilani reveals the names of 19 popular stocks that should be avoided at all costs in this free video.

Watch Now

WORST STOCKS FOR 2021

Wall Street insider Shah Gilani reveals the names of 19 popular stocks that should be avoided at all costs in this free video.

Watch Now

That soured Buffett on airline stocks for decades.

Buffett refuses to explain his recent about-face on the industry, citing a self-imposed rule to not discuss Berkshire investments. Still, his investment in the space has sparked interest and follow-on trades.

At $50.19, Delta shares are up 1.93% year to date. Three- and five-year gains are 61.47% and 465.61%, respectively.

Editor's Note: Timing is everything when it comes to making money in markets - and this new, free service we created puts timing on your side...

Follow Money Morning on Facebook and Twitter.

Related Articles:

  • Reuters: Delta Air Lines Profit Falls 36.5 Percent
  • CNBC: Early Movers: AAPL, DAL, DIS, AMZN, GS, JNJ, BA, TM, & More
  • The Street: U.S. Airlines Close Higher Ahead of Delta Earnings Results
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us How Money Morning Works FAQs Contact Us Search Article Archive Your Team Text Messaging Terms of Use
TOPICS
AI Investing Best Stocks to Buy Stock Forecasts Stocks to Sell Now Technology Stocks Best REITs to Buy Now IPO Stocks Penny Stocks Dividend Stocks Cryptocurrencies How to Trade Options Best Trades to Make Now Options Trading Strategies Weekly Trade Recommendations Income Investing Guide Retirement Articles Special Investing Reports Meet Our Experts
PREMIUM SERVICES
Money Map Press Home Fast Fortune Club Microcurrency Trader Rocket Wealth Initiative Quantum Data Profits Darknet Alpha Accelerators Brutus Alerts Resource Traders Alliance Rob Roy Trader Long-Term Equity Profits

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information