Shares of Delta Air Lines (NYSE:DAL) declined in pre-market trading after the airline’s guidance disappointed investors. In the third quarter, DAL expects its earnings to be between $1.70 and $2 per share, below consensus estimates of $2.04 per share. The company has projected its Q3 revenues to grow in the range of 2% to 4%. Furthermore, Delta plans to increase its seating capacity in the range of 5% to 6% in Q3, down from 8% in Q2.
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Looking forward, Delta reiterated its FY24 outlook and anticipates earnings between $6 and $7 per share, compared to Street estimates of $6.57 per share.
DAL’s Q2 Results
When it comes to the company’s Q2 results, DAL’s adjusted earnings fell by 11.9% year-over-year to $2.36 per share, falling short of analysts’ estimates of $2.38 per share. The company generated operating revenues of $15.4 billion in the second quarter, up by 5.4% year-over-year, compared to Street estimates of $15.5 billion.
The company’s management stated that corporate travel demand continues to rise at double-digit levels, with many companies planning to maintain or increase spending. Delta’s international revenue remains strong despite increased competition.
Is DAL Stock a Buy?
Analysts remain bullish about DAL stock, with a Strong Buy consensus rating based on a unanimous 14 Buys. Year-to-date, DAL has increased by more than 15%, and the average DAL price target of $62.49 implies an upside potential of 33.4% from current levels. However, these analyst ratings are likely to change following DAL’s Q2 results.
