Delta Air Lines (DAL), an American carrier, is set to release its Q4 results on January 10. Wall Street analysts expect the company to report earnings of $1.76 per share for Q4, up 37.5% year-over-year. Meanwhile, revenues are expected to increase by 3% year-over-year, reaching $14.65 billion for the quarter.
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Building on this, Delta Air Lines shares have risen about 48.5% this year, driven by increased travel demand, strategic initiatives like expanding premium seating, and positive analyst outlooks. Also, the airline’s focus on operational efficiency, improved margins, and substantial free cash flow has strengthened its financial position.
Analysts Remain Optimistic Ahead of DAL’s Q4 Earnings
Ahead of the company’s Q4 results, seven analysts maintained their Buy ratings on the stock and four of them increased their price targets on the stock.
Among these, Bank of America Securities analyst Andrew Didora has issued a Buy rating based on strong EPS projections and expected revenue growth. The company is expected to set its 2025 EPS guidance between $7 and $8, aligning with BofA’s estimate of $7.34 and the consensus of $7.37, reflecting consistent 10% EPS growth as previously mentioned. The analyst believes that better cost management and steady fuel prices should support the EPS forecast.
At the same time, the analyst expects Delta’s revenue to grow further, helped by good capacity conditions and positive industry trends. Didora predicts over 5% revenue growth in each quarter of 2025, with a peak in the third quarter.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 6.64% move in either direction.
Is DAL a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DAL stock based on 17 unanimous Buys assigned in the past three months, as indicated by the graphic below. The average DAL price target of $78.96 per share implies 29.06% upside potential.
