Shares of Delta Air Lines (NYSE:DAL) gained in today’s trading as investors await its Q2 earnings results on July 11 before the market opens. Analysts are expecting earnings per share to come in at $2.36 on revenue of $15.704 billion. This represents a decline from the $2.68 per share seen in the year-ago period, according to TipRanks’ data.
However, DAL has beaten earnings estimates for four consecutive quarters (as pictured below), and it’s still possible for earnings to grow in comparison to last year’s results.
Options Traders Anticipate a Large Move
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 6.4% move in either direction.
Is Delta Stock a Buy or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DAL stock based on 16 Buys assigned in the past three months, as indicated by the graphic below. After a 16.6% year-to-date rally, the average DAL price target of $61.52 per share implies 31.62% upside potential.
