What analysts think about Delta Air Lines stock ahead of earnings

On By Littum

Key takeaways

  • Delta Air Lines is scheduled to report fourth-quarter earnings before the opening bell on Friday.
  • All 13 analysts tracked by Visible Alpha rate Delta’s stock a “buy,” with an average price target predicting gains of 30%.
  • Delta’s revenue and adjusted net income are each expected to increase year-over-year.

Delta Air Lines ( DAL ) is set to report earnings for the fourth quarter of fiscal 2024 before markets open on Friday, with analysts expecting increases in revenue and adjusted profit.

Analysts are bullish on the airline, with all 13 analysts tracked by Visible Alpha maintaining a “buy” rating on Delta stock. Analysts have an average price target of $76.85 for the stock, which would be a 30% gain from its close of $59 on Friday.

The airline is expected to report $14.87 billion in revenue for the fourth quarter, up about 4.6% from the same time last year. However, net income is expected to fall 45% to $1.12 billion from $2.04 billion a year earlier.

Delta’s net income for the fourth quarter of 2023 was boosted by a positive adjustment in the value of the airline’s investments, as its stake in the private air travel service Wheels Up (UP) became more valuable thanks to a jump in the company’s share price in that quarter. After accounting for the value change, Delta’s adjusted net income came in at $826 million a year ago and is expected to have risen to $1.15 billion.

Premium products that drive Delta’s plans for 2025 and beyond

At the airline’s investor day in November, Delta said growing demand for travel across generation lines made the company confident it will continue to see revenue growth for its premium seat products.

Delta said it expects revenue and earnings per share (EPS) will rise in the coming years as its premium products expand and its profit margins improve.

The airline is also still in the middle of its legal battle with CrowdStrike ( CRWD ) after filing a lawsuit late last year seeking damages for last summer’s Windows outage caused by a CrowdStrike update that led to thousands of Delta flights were canceled and $500 million in costs. . CrowdStrike has said it is not responsible for Delta’s handling of the outage and has sought dismissal of the lawsuit, citing a liability and indemnification clause in their contract, CNBC reported last month.

The airline’s stock has risen almost 50% over the past 12 months.