Delta Airlines (NYSE:DAL) shares are tanking in the pre-market session today after the company’s first-quarter bottom-line expectations disappointed investors.
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During the fourth quarter, revenue surged 41.9% year-over-year to $13.44 billion, outpacing estimates by $720 million. EPS at $1.48 too comfortably glided past expectations by $0.16.
In Q4, DAL generated an operating cash flow of $1.2 billion. For the full-year 2022, revenue stood at $50.6 billion and EPS came in at $3.20.
Looking ahead to Q1, the company now expects revenue growth to range between 14% and 17% as compared to 2019. EPS is seen hovering between $0.15 and $0.40. The bottom line forecast is incorporating an impact from fuel and labor cost increases and came in well short of the Street’s expectations of around $0.64.
The Street though remains optimistic about the stock with a Strong Buy consensus rating alongside an average price target of $50.64. This points to a 27.88% potential upside in the stock.
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