Earnings Per Share (EPS) of $0.46, surpassing estimates and indicating operational efficiency.
Revenue reached approximately $12.98 billion, slightly above expectations, showcasing strong demand and cost management.
Despite solid financials, concerns over liquidity and a decline in stock price highlight areas for investor caution.
Delta Air Lines, trading as NYSE:DAL, is a major American airline headquartered in Atlanta, Georgia. It operates an extensive domestic and international network, serving over 300 destinations in more than 50 countries. Delta competes with other major airlines like American Airlines and United Airlines. The company is known for its focus on customer service and operational efficiency.
On April 9, 2025, Delta reported earnings per share (EPS) of $0.46, surpassing the estimated $0.38. This performance also exceeded the Zacks Consensus Estimate of $0.40 per share, marking a slight increase from the $0.45 per share reported in the same quarter last year. Despite this, the stock price declined by 3.77%, as highlighted by the company’s failure to meet its own guidance of $0.70 to $1.00 per share.
Delta’s revenue for the quarter was approximately $12.98 billion, slightly above the estimated $12.97 billion. The company attributes its solid revenue and strong cost performance to its profitability, which remains comparable to the previous year. Delta is projecting an operating margin of 11% to 14% for the June quarter, with expected EPS ranging from $1.70 to $2.30.
The airline’s financial metrics reveal a relatively low valuation, with a price-to-earnings (P/E) ratio of 6.79 and a price-to-sales ratio of 0.38. This suggests that investors are paying 38 cents for every dollar of sales. Delta’s enterprise value to sales ratio is 0.60, and its enterprise value to operating cash flow ratio is 4.62, indicating a strong ability to cover its enterprise value with operating cash flow.
Delta’s debt-to-equity ratio is 1.11, reflecting moderate debt usage. However, the current ratio of 0.37 may indicate potential liquidity concerns in meeting short-term obligations. Despite these challenges, Delta offers an earnings yield of 14.72%, providing a substantial return on investment relative to its share price.