Delta Air Lines, Inc. (NYSE:DAL) is set to release its quarterly earnings with an estimated EPS of $1.74 and projected revenue of $14.1 billion.
The company faces challenges due to high costs but expects revenue growth between 2% to 4%.
Investors should watch the impact of the holiday season on Delta’s performance and any updates regarding the lawsuit against CrowdStrike.
Delta Air Lines, Inc. (NYSE:DAL), a major American airline, provides air travel services globally. Competing with giants like American Airlines and United Airlines, Delta is preparing to announce its quarterly earnings on January 10, 2025. Wall Street analysts have forecasted an earnings per share (EPS) of $1.74 and projected revenue of approximately $14.1 billion.
Despite anticipated challenges in its fourth-quarter earnings due to high costs affecting its bottom-line performance, revenue growth is expected to range from 2% to 4%, with EPS projected between $1.60 and $1.85. This mixed track record in meeting revenue and EPS estimates suggests a cautious approach ahead of the earnings release, as highlighted by Seeking Alpha.
Investors are advised to closely monitor the impact of the holiday season on Delta’s performance, as it often influences travel demand, significantly affecting airline revenues. Additionally, any updates regarding the lawsuit against CrowdStrike could also influence the company’s outlook, as noted by Seeking Alpha.
Delta’s financial metrics offer insights into its market valuation and financial health. The company has a price-to-earnings (P/E) ratio of approximately 8.13, indicating the market’s valuation of its earnings. Its price-to-sales ratio stands at about 0.65, suggesting a relatively low market valuation compared to its revenue. The enterprise value to sales ratio is around 0.99, reflecting the company’s total valuation in relation to its sales.
The enterprise value to operating cash flow ratio is approximately 8.97, providing insight into Delta’s cash flow generation relative to its valuation. The earnings yield is about 12.29%, indicating the return on investment for shareholders. Delta’s debt-to-equity ratio is approximately 1.30, highlighting its use of debt financing relative to its equity. Lastly, the current ratio is around 0.39, indicating the company’s ability to cover its short-term liabilities with its short-term assets.
