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Tuesday, January 19, 2016

Delta Air Lines (DAL) reported 4Q earnings on Tue 19 Jan 2016 (b/o)

** charts before earnings **


** charts after earnings **


Delta Air Lines misses by $0.01, misses on revs (preannounced results)  :
  • Reports Q4 (Dec) earnings of $1.18 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $1.19; revenues fell 1.5% year/year to $9.5 bln vs the $9.62 bln Capital IQ Consensus.
  • Passenger unit revenues declined 1.6%, which includes ~2 points of impact from foreign currency.
    • Co preannounced PRASM and margins.
  • "Looking ahead, the overall demand environment remains solid. The breadth of our network scale allows us to focus our commercial efforts on those areas of the business with the best opportunity such as the domestic marketplace, while reducing our exposure in some weaker international regions. While we expect international volatility and currency pressures to result in unit revenue declines of 2.5 - 4.5% for the March quarter, we should see over 10 points of margin improvement given our capacity discipline in the face of a more than 50 percent decline in fuel prices." Raises operating margin to 18-20% from 16-17%.
  • "As we look ahead to 2016, we have a significant opportunity to improve our performance even further. With over $3 billion in potential savings from lower fuel prices and numerous commercial, operational and cost initiatives already in place, we expect to again perform in the top tier of the S&P Industrials on earnings growth, margins, and cash flows this year despite global economic challenges."

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