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Non-Tech : American Airlines Group, Inc.
AAL 28.58-0.2%Sep 18 3:59 PM EDT

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From: Sam7/9/2019 8:03:55 AM
   of 854
 
Delta Air Lines Earnings Are Coming. Here's What to Expect. -- Barrons.com
DOW JONES & COMPANY, INC. 6:29 AM ET 7/9/2019

Symbol Last Price Change
59.37 0 (0%)
31.05 0 (0%)
QUOTES AS OF 04:01:31 PM ET 07/08/2019


Delta Air Lines (DAL) is scheduled to report its second-quarter earnings Thursday morning before the market opens. It's the first of the major U.S. airlines to report this earnings season.

The airline's stock has returned 20.5% this year, including dividends, as of Monday's close. That is just short of the S&P 500, which has returned 20.6%, but ahead of the U.S. Global Jets ETF(JETS) , which is up 11.4%.

Delta stock has outpaced its airline competitors United Airlines Holdings (UAL), American Airlines Group (AAL), and Southwest Airlines (LUV) which have returned 8.3%, 2.7%, and 12.8%, respectively, in 2019.

Here is a snapshot of Wall Street's expectations and some recent history.

   -- Delta has led its airline peers this year, after a challenging 2018. In
recent months, Delta has announced a bevy of planned investments,
including replacing a third of its fleet, upgrading the Wi-Fi
capabilities of its aircraft, and renovating its terminals at airports
including New York's LaGuardia and Los Angeles International Airport. CEO
Ed Bastian spoke to Barron's about those plans in March.

-- While the forced grounding of Boeing's (BA) 737 MAX jet has been nothing
but a headache for many of Delta's competitors, the airline has actually
benefited from it. That's because Delta doesn't have any 737 MAX jets in
its fleet, and the grounding has tightened capacity in the industry,
which has led to higher airfares. Delta released its June operating
performance numbers last week, which showed faster-than-expected sales
growth, thanks to strong pricing.

-- Barron's has been bullish on Delta stock, naming it one of our top 10
stock picks for 2019. We reiterated that bullish call in March.

-- Warren Buffett's Berkshire Hathaway (BRK.A) increased its ownership stake
in Delta to almost 11% in the first quarter.

-- Delta is expected to report $2.26 in adjusted earnings per share for the
second quarter, up from $1.77 in the year-ago quarter. GAAP earnings are
forecast to come in at $2.25, up from $1.47 last year. Revenue is
estimated at $12.5 billion, versus $11.8 billion a year earlier.

-- Delta's first-quarter adjusted earnings of 96 cents per share, reported
on April 10, were 12.2% ahead of analysts' expectations. Sales were as
expected, at $10.4 billion.

-- Wall Street analysts are bullish on the stock: 68% have a Buy or
equivalent rating, while 32% recommend a Hold. No analysts rate Delta
Sell. Their average price target is $67.40, 13.8% above its recent
$59.24.

-- Delta will host a conference call with analysts on Thursday at 10 a.m. ET.
Write to Nicholas Jasinski at nicholas.jasinski@barrons.com
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