Delta Air Lines (DAL) stock sailed higher out of the gate Friday after the air carrier beat top- and bottom-line expectations for its fourth quarter and issued a strong outlook for the first quarter.
In the three months ended December 31, Delta's operating revenue increased 5.7% year over year to $14.4 billion. Its earnings per share (EPS) rose 44.5% from the year-ago period to $1.85.
"Delta built momentum as we closed out 2024, with December quarter total revenue growth of 5.7% coming in ahead of guidance as our team delivered industry-leading operational performance and demand trends accelerated through the quarter," said Delta President Glen Hauenstein in a statement.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results beat analysts' expectations. Wall Street was anticipating revenue of $14.2 billion and earnings of $1.75 per share, according to CNBC.
For the first quarter of fiscal 2025, Delta said it expects to achieve revenue growth in the range of 7% to 9% and EPS of 70 cents to $1.00. This is ahead of the 5% revenue growth and 65 cents to 97 cents in earnings per share analysts are anticipating.
For the full fiscal year, Delta added that it expects earnings per share to grow more than 10%.
"As we move into 2025, we expect strong demand for travel to continue, with consumers increasingly seeking the premium products and experiences that Delta provides," CEO Ed Bastian said in a statement.
Is Delta stock a buy, sell or hold?
Delta Air Lines is up more than 60% in the past year and Wall Street is very bullish on the industrial stock.
According to S&P Global Market Intelligence, the average analyst target price for DAL stock is $77.06, representing implied upside of more than 13% to current levels. Additionally, the consensus recommendation is a Strong Buy.
Financial services firm Argus Research has a Buy rating on the large-cap stock with a $70 price target.
"We expect demand for leisure travel to remain strong in 2025," wrote Argus analyst John Staszak in a January 6 note. "We also expect a continued recovery in international traffic. Based on management's plans to increase unit revenue and reduce debt, we believe DAL shares are attractively valued at 7.5 times our 2025 EPS estimate."
Related Content
-
S&P 500 Hits New Highs as Rally Resumes: Stock Market TodayTech stocks were the biggest gainers on Wall Street today, with Nvidia and Dell making notable moves.
-
The Shutdown Standoff Is Heading for Its Next Big TestA key mid-October deadline could intensify the shutdown fight in Washington, and the fallout could soon hit workers and your wallet.
-
S&P 500 Hits New Highs as Rally Resumes: Stock Market Today
Tech stocks were the biggest gainers on Wall Street today, with Nvidia and Dell making notable moves.
-
Should You Buy Gold as It Tops $4,000? Here's What the Experts SayRate cuts, a weak dollar and macro uncertainty have helped create a "perfect storm" for gold this year. Should investors add exposure or is it too late to buy?
-
Preferred Bank Stocks: The Investment Retirees (and Others) May Be Missing Out OnMost large banks issue preferred stocks that pay out fixed dividends, often with higher yields than bonds. Should you make room for them in your portfolio?
-
Don't Let Your Equity Compensation Trip You Up: A Financial Expert's GuideStock options, RSUs and other executive perks can come with some serious strings attached. To avoid a nasty tax surprise, you need a plan.
-
Rally Fades on Mixed AI Revolution News: Stock Market TodayAll three main U.S. equity indexes opened higher but closed lower as a seven-session winning streak for the S&P 500 came to an end.
-
The Spendthrift Trap: Here's One Way to Protect Your Legacy From an Irresponsible HeirA spendthrift clause in an estate plan can protect an inheritance from a financially irresponsible child's debts and poor decisions.
-
Adapting to AI's Evolving Landscape: A Survival Guide for BusinessesLike it or not, AI is here to stay, and opting out could be disastrous for your organization. Instead, focus on what you can control and be flexible, as AI is still evolving.
-
S&P, Nasdaq Hit New Highs: Stock Market TodayA late-day rally wasn't enough to lift the Dow into the green as its six-session winning streak came to an end.
