Delta Air Lines Meets on the Top Line, Misses Where It Counts

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Delta Air Lines (NYS: DAL) reported earnings on April 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Delta Air Lines met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased.


Margins grew across the board.

Revenue details
Delta Air Lines reported revenue of $8.41 billion. The eight analysts polled by S&P Capital IQ expected sales of $8.36 billion on the same basis. GAAP reported sales were 8.6% higher than the prior-year quarter's $7.75 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at -$0.05. The 13 earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share on the same basis. GAAP EPS were $0.15 for Q1 against -$0.38 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 39.4%, 2,530 basis points better than the prior-year quarter. Operating margin was 4.4%, 550 basis points better than the prior-year quarter. Net margin was 1.5%, 560 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $9.48 billion. On the bottom line, the average EPS estimate is $0.76.

Next year's average estimate for revenue is $36.72 billion. The average EPS estimate is $2.28.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 538 members out of 921 rating the stock outperform, and 383 members rating it underperform. Among 213 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 119 give Delta Air Lines a green thumbs-up, and 94 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Delta Air Lines is outperform, with an average price target of $14.36.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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