A Hidden Danger in Delta Earnings


Delta Airlines reported this morning, and while it hit on earnings and slightly missed on revenue, the market reaction was overall positive. In this video, Motley Fool industrials analyst Blake Bos highlights for investors the thing about the earnings report that stuck out to him the most: the company's capital expenditures this past quarter. With so much of the company's cash flow spent on capex and debt repayments, capital left to return to shareholders is minimal, and the projected capex for next quarter is expected to be similarly high. Blake tells us Delta's plans for increasing cash flow next quarter despite high capital expenditures, and points out that it will be key for investors to follow whether or not Delta achieves that goal.

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

The article A Hidden Danger in Delta Earnings originally appeared on Fool.com.

Blake Bos has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.