March wasn't the best month for the S&P 500, with the index dropping 5.8%. It was a tough month all around, as 98 of the S&P 500 stocks finished the month down at least 10%, but two especially had a bad month: Delta Air Lines (DAL 0.17%) and United Airlines (UAL 1.15%). Delta and United were the S&P 500's worst-performing stocks in March, falling 27.5% and 26.4%, respectively. Why did both airlines have such a bad March?Broader economic uncertainty took its toll on both companies, but there were also indust ...

On April 9, Delta Air Lines (DAL) reported better-than-expected revenues and earnings per share for the first quarter of 2025 despite the tariff-induced uncertainty. Given the current uncertain scenario, DAL decided against reaffirming its 2025 financial guidance. DAL stock has gained 9.6% since the earnings release. Apart from the better-than-expected results, the upside was aided by the 90-day pause on most reciprocal tariffs.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Highlight ...

Core Insights - The article discusses Delta Air Lines' Q4 earnings preview, highlighting key factors for investors to monitor [1] Group 1: Company Overview - Delta Air Lines is preparing to release its Q4 earnings numbers, which are anticipated to be significant for investors [1] - The analysis emphasizes the importance of understanding the underlying factors that could impact Delta's financial performance in the upcoming report [1] Group 2: Analyst Background - The author has extensive experience in finance, holding a PhD in Finance and being a CFA charterholder, which adds credibility to the analysis [1] - The author has a background in researching various financial topics, including Behavioral Finance and Corporate Governance, indicating a well-rounded perspective on investment analysis [1]

Core Insights - Delta Air Lines has experienced a significant decline in stock value, losing nearly one-third since January, primarily due to trade turmoil impacting GDP growth [2]. Group 1: Company Analysis - Delta Air Lines was previously rated as a buy, indicating a positive outlook before the recent downturn [2]. - The decline in Delta's stock value is attributed to external economic factors, particularly trade issues that could affect consumer spending and overall economic growth [2]. Group 2: Industry Context - The aerospace, defense, and airline sectors are highlighted as having significant growth prospects, with ongoing analysis aimed at identifying investment opportunities within these industries [2].

Despite pulling its full-year guidance, Delta Air Lines' earnings report is actually quite impressive given the current environment.Markets often look to airlines for clues about the health of the economy. Now that U.S. stocks have been beaten down, any clues about the economy today are both timely and valuable. So Delta Air Lines' (DAL 23.41%) recent quarterly report is worth a closer look.When the company reported quarterly results this week and pulled its full-year guidance, it could've easily sparked co ...

Core Viewpoint - Delta Air Lines exceeded Q1 expectations, with stock prices rising significantly due to favorable earnings and external market factors, although the stock remains down year-to-date [1][3]. Group 1: Q1 Results - Delta reported Q1 sales of $14.04 billion, surpassing estimates of $13.8 billion and increasing from $13.74 billion year-over-year [3]. - The net income for Q1 was $240 million, translating to adjusted earnings of $0.46 per share, exceeding estimates of $0.40 by 15% and slightly up from $0.45 in the same quarter last year [3]. - Operating cash flow for Q1 was $2.4 billion, with operating income at $569 million and an operating margin of 4% [4]. Group 2: Cautious Guidance - Due to economic uncertainty surrounding global trade, Delta plans to protect margins and cash flow by reducing planned capacity growth in the latter half of the year while managing costs and capital expenditures [7]. - Delta did not provide a full-year outlook but expects Q2 profitability between $1.5 billion and $2 billion, with EPS projected in the range of $1.70 to $2.30, which is below the current Zacks Consensus of $2.62 per share [8]. - Q2 sales are anticipated to be between $16.3 billion and $17 billion, aligning closely with the Zacks Consensus of $16.71 billion [8]. Group 3: Valuation - Delta's stock is currently trading at $44, with a forward earnings multiple of 5.2X, which is below the Zacks Transportation-Airline Industry average of 7.5X [9]. - The stock trades at 0.3X sales, significantly below the optimal level of less than 2X, with the industry average at 0.5X [9]. Group 4: Market Position - Delta's stock currently holds a Zacks Rank 3 (Hold), indicating a neutral position in the market [11]. - The potential for continued stock rally may depend on earnings estimate revisions as analysts assess the company's cautious guidance and the impact of tariff changes [11].

Walmart's lower earnings guidance for the current quarter (fiscal quarter ending in April) reflects 'price investments' and an unfavorable merchandise mix, both reflecting the impact of tariffs and consumer spending. We had been seeing this in the revisions trend already, with estimates steadily coming down. Tech Remains a Growth Driver Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the curr ...

Financial Performance - Operating income for the March 2025 quarter was $569 million, a decrease of $45 million compared to the March 2024 quarter[73]. - Total revenue increased by $292 million, or 2%, to $14.04 billion, driven by demand for premium products and a 4% increase in capacity[74][81]. - Passenger revenue rose by $349 million, or 3%, to $11.48 billion, with premium products and loyalty travel awards contributing significantly[81]. - Total operating expenses increased by $337 million, or 3%, to $13.47 billion, primarily due to higher employee costs and increased landing fees[75][90]. - Revenue passenger miles (RPM) increased by 3% to 55,678 million in Q1 2025 from 54,207 million in Q1 2024[105]. - Total revenue per available seat mile (TRASM) decreased by 2% to 20.53 cents in Q1 2025 compared to 20.98 cents in Q1 2024[105]. - Adjusted TRASM for Q1 2025 was 18.97 cents, down from 19.17 cents in Q1 2024, reflecting a decrease of 1.04%[129]. - Free cash flow for Q1 2025 was $1,280 million, derived from net cash provided by operating activities of $2,378 million and net cash used in investing activities of $1,224 million[131]. Cash Flow and Liquidity - Cash flow from operating activities generated $2.4 billion, with total cash sales to American Express reaching $1.9 billion, a 13% increase year-over-year[77]. - Free cash flow for the March 2025 quarter was $1.3 billion, following $1.2 billion in cash used for investing activities[78]. - As of March 31, 2025, Delta had $6.8 billion in cash and undrawn credit facilities, ensuring liquidity for the next twelve months[110][111]. Fuel Expenses - The average price per gallon of fuel decreased to $2.45 from $2.81, contributing to a $188 million reduction in fuel expenses[93]. - Delta's average price per fuel gallon decreased by 11% to $2.47 in Q1 2025 from $2.79 in Q1 2024[105]. - Total fuel expense for Q1 2025 was $2,410 million, a decrease of 7.2% from $2,598 million in Q1 2024[128]. - Fuel expense represented approximately 18% of total operating expenses in Q1 2025, down from 20% in Q1 2024[114]. Capital Expenditures - Capital expenditures for Q1 2025 were $1.2 billion, with an expected total capital spend of approximately $5.0 billion for the year, primarily for aircraft and technology enhancements[119]. Employee Compensation - Delta paid $1.4 billion in profit sharing in February 2025 related to 2024 pre-tax profit, with an accrual of $124 million for Q1 2025[115][116]. - The company withheld a total of 1,155,756 shares from employees during Q1 2025 to satisfy tax obligations[139]. Tax and Regulatory Information - The company projects an annual effective tax rate for 2025 between 24% and 26%[100]. - The company made no changes to its internal control over financial reporting that materially affected its financial reporting[135]. - There were no material changes in market risk from the previous disclosures in the Form 10-K[133]. - The company did not report any material changes in legal proceedings from the previous Form 10-K[136]. Refinery Segment Performance - Refinery segment generated operating revenue of $1.698 billion for the three months ended March 31, 2025, a decrease of $351 million compared to $2.049 billion in 2024[104]. - Operating loss for the refinery segment was $1 million in Q1 2025, down from operating income of $49 million in Q1 2024, primarily due to lower pricing of refined products[104]. Cost Metrics - CASM-Ex for Q1 2025 was 14.44 cents, slightly up from 14.08 cents in Q1 2024, indicating an increase of 2.55%[130]. - Adjusted CASM for Q1 2025 was 19.69 cents, down from 20.04 cents in Q1 2024, reflecting a decrease of 1.75%[130].

Core Insights - Delta Air Lines experienced a year-over-year revenue growth of 3.3% in the March quarter despite facing broad economic uncertainty [1] - The company revised its March quarter outlook downward, expecting total revenue growth of 3% to 4%, down from an earlier guidance of 7% to 9% [4] - Delta's premium, loyalty, and international businesses showed resilience, while domestic and main cabin businesses were weaker [5][6] Revenue Performance - Revenue growth was 7% in premium products, 11% in loyalty travel rewards, and mid-single digits in international [6] - Main cabin revenue decreased by 1%, and domestic revenue fell by 3% [6] Corporate Environment - Corporate sales growth moderated, with low-single digits year-over-year increase, attributed to reduced corporate confidence impacting growth in February and March [6] - Delta's CEO noted that the macroeconomic environment was more challenging than initially anticipated, leading to a stall in growth [2]

Delta Air Lines, Inc. (NYSE:DAL) Q1 2025 Earnings Conference Call April 9, 2025 10:00 AM ET Company Participants Julie Stewart - Vice President, IR Ed Bastian - CEO Glen Hauenstein - President Dan Janki - CFO Tim Mapes - SVP & Chief Communications Officer Peter Carter - EVP, External Affairs Conference Call Participants Conor Cunningham - Melius Research Andrew Didora - Bank of America Catherine O'Brien - Goldman Sachs Duane Pfennigwerth - Evercore ISI Mike Linenberg - Deutsche Bank Tom Fitzgerald - TD Cowe ...