Can Delta (DAL) Keep the Earnings Streak Alive?


Delta Airlines Inc. (DAL) is slated to report its first-quarter 2014 results on Apr 23, before the market opens. In the last quarter, the company delivered a +3.17% earnings surprise. Let’s see how things are shaping up prior to this announcement.

Earnings Whispers

Our proven model does not conclusively show that Delta Airlines is likely to beat earnings because does not have the right combination of two key ingredients of a positive surprise prediction and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).

Zacks ESP: Earnings ESP which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at 0.00% for Delta.

Zacks Rank: Delta currently has a Zacks Rank #2. However, the combination of Delta’s Zacks Rank #2 and +0.00% ESP makes surprise prediction difficult.

Factors Influencing Results This Quarter

We remain encouraged by Delta’s commitment to improve operational performance, enhance customer experience and increase shareholder returns through balanced capital investments. Strong domestic market, capacity discipline, cost control measures and customer-focused initiatives are expected to boost the company’s topline.

Further, the acquisition of Virgin Atlantic will strengthen Delta’s trans-Atlantic operations. However, rise in wages and salaries of contract workers are expected to increase the non-fuel expenses of the company, thus affecting its bottom line. Further, the formation of American Airlines Group and winning of airport slots by Southwest Airlines will heighten competition for Delta.  

Other Stocks to Consider

Here are some other companies to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Alaska Air Group Inc. (ALK) with earnings ESP of +7.14% and Zacks Rank #1.

Allegiant Travel Group Inc. (ALGT) with earnings ESP of +3.53% and Zacks Rank #2.

Copa Holdings SA (CPA) with earnings ESP of 0.32% and Zacks Rank #3.

Read the Full Research Report on DAL
Read the Full Research Report on CPA
Read the Full Research Report on ALGT
Read the Full Research Report on ALK

Zacks Investment Research

View Comments (0)