Delta Air Q3 Earnings Top Estimates

Shares of General Motors Company (NYSE:GM), declined -1.47% to $32.94, during its last trading session.

Delta also estimates fuel prices will average $1.80 to $1.85 per gallon for the quarter.

Delta’s operating revenue declined $71 million, or 0.6%, during July, August and September.

Delta reported a 4.9 percent drop in the third quarter for passenger unit revenue, which measures sales relative to the capacity and distance of flights. In June 2013, Delta Air Lines Inc acquired a 49% stake in Virgin Atlantic Airways Ltd.

“Our commercial initiatives are delivering solid benefits as we’ve expanded our revenue premium to the industry, strengthened our hubs in New York, Seattle and Los Angeles, and deepened our partnerships around the globe”, Ed Bastian, Delta’s president, said in a statement. The airline benefited from reduction in its fuel expenses, through which it was able to report Cost per Available Seat Miles (CASM) of 13.07 cents with YoY decline of 17%. It forecast operating margin of 16 percent to 18 percent for the fourth quarter. “Our conservative growth in this low fuel environment is evidence of our commitment to getting RASM back on a positive trajectory, which is a key component to achieving our long-term margin targets”. In the same period a year ago, Delta reported EPS of $1.20 on revenues of $11.18 billion. The company’s quarterly revenue was up.8% compared to the same quarter past year. Credit Suisse boosted their price target on shares of Delta Air Lines from $61.00 to $65.00 in a research note on Thursday, September 10th. The firm now has $50.15 price target on the stock. Intraday, the shares aggregated $74.12 million in upticks but saw an exodus of $79.89 million in downticks. Stifel Nicolaus restated a buy rating and set a $55.00 price objective on shares of Delta Air Lines in a report on Friday, July 17th. Long term net inflows increased from $29 billion last year to $35 billion this year.

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Delta stock is rising by 0.54% to $48.75 in mid-morning trading on Tuesday. Using a simplified scale where Strong Buy equals 1 and Strong Sell equals 5, the consensus simplified rating for Delta Air Lines, Inc.is 1.08. The 52-week low of the share price is at $30.12. The stock’s 50-day moving average is $45.76 and its 200-day moving average is $44.36.

Several other equities research analysts have also issued reports on DAL. Deutsche Bank maintained the stock on October 5 with “Buy” rating.

The stock, as of late close, has indicated week after week perky execution of 3.84% which was kept up at 9.83% in 1-month period. Linenberg has a success rate of 68.4% and is ranked #33 out of 3773 analysts, while Becker has a success rate of 81.5% and is ranked #4. Two analysts have rated the stock with a hold rating, fifteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock.