Delta Air Lines Shares Rise on Restored Full-Year Guidance. Get caught up on the day's gainers and decliners on the latest Stock Movers report https://t.co/9CpvQF71yv ...

Meanwhile, Delta Airlines just reporting and Phil Labau joins us now with the numbers. Bill, Robert, take a look at shares of Delta, the company reporting Q2 results that are better than expected. Though remember the estimates have come down quite a bit over the last several weeks.For the quarter, Delta earned $210 adjusted. That's better than the estimate of 205. Revenue coming in at 15.51% billion, a little better than the estimate of 15.48% billion.The metrics in the second quarter year-over-year, listen ...

JOINING US NOW IS DROPPED FERGUSON. THANKS FOR JOINING US AS WE KICK OFF EARNINGS SEASON WITH THE AIRLINES. THE NEWS FROM DELTA AIRLINES IN YOUR REACTION, PLEASE.A SLIGHT BEAT ON THE NUMBERS. MY SENSE WAS, WHEN DEALT WITH THROUGH GUIDANCE, IT WAS MORE THEY WERE CONCERNED. THEY DID NOT UNDERSTAND WHAT WAS GOING TO HAPPEN TO THE ECONOMY.SO A SLIGHT BEAT. IT SEEMS LIKE REVENUE IS HANGING IN, LIKE SOME OF THE REPORT. I WOULD THINK IT WOULD BE POSITIVE FOR ALL THE AIRLINES, BUT MOSTLY IT IS POSITIVE FOR FULL-SER ...

Delta Air Lines issues a new profit target for this year after pulling the goal three months ago, in a sign that demand is bouncing back https://t.co/O78cTsClZS ...

Core Viewpoint - Delta Air Lines has revised its profit forecast for 2025 downward due to lower-than-expected demand and an oversupply of flights, although its outlook for summer travel exceeded Wall Street expectations [1][3]. Financial Performance - Delta anticipates adjusted earnings per share of $1.25 to $1.75 for Q3, slightly above Wall Street's expectation of $1.31 [2]. - The company expects full-year adjusted earnings of $5.25 to $6.25 per share, a decrease from the previous forecast of over $7.35 per share made in January [3]. - Delta reported adjusted earnings per share of $2.10, surpassing the expected $2.05, and adjusted revenue of $15.51 billion, slightly above the forecast of $15.48 billion [8]. Revenue Insights - Revenue from premium products rose by 5%, while sales from the main cabin fell by 5% compared to the previous year [6]. - The partnership with American Express contributed significantly, with revenue increasing by 10% year-over-year to $2 billion in Q2 [5]. Market Trends - Bookings have stabilized but at lower levels than initially expected, with travelers shifting their booking patterns closer to travel dates [4]. - Corporate travel has stabilized but is not experiencing the anticipated growth of 5% to 10% compared to last year [7]. Capacity Management - Delta plans to implement "surgical" capacity cuts after the peak summer travel season, which ends around mid-August [4].

Financial Performance - Delta Air Lines reported record revenue of $15.5 billion for the June quarter, approximately 1 percent higher than the previous year, with a 13 percent operating margin and $1.8 billion in pre-tax profit [2][4][8] - The company expects earnings per share for the September quarter to be between $1.25 and $1.75, with an operating margin of 9 to 11 percent [3][4] - Full year guidance has been restored, with expected earnings per share of $5.25 to $6.25 and free cash flow of $3 to $4 billion [3][10] Revenue Streams - Diverse, high-margin revenue streams contributed 59 percent of total revenue, with premium revenue growing 5 percent year-over-year and loyalty revenue increasing by 8 percent [8][10] - International revenue grew by 2 percent during the quarter, supported by strong demand for Transatlantic travel and record Pacific revenue, which was up 11 percent compared to the second quarter of 2024 [8][10] Cost Management - Non-fuel unit cost growth for the June quarter was 2.7 percent, consistent with expectations, and the company anticipates the September quarter will show the best non-fuel unit cost performance of the year [5][9] - Adjusted fuel expense decreased by 11 percent year-over-year, with an average fuel price of $2.26 per gallon, down 14 percent from the previous year [14][15] Cash Flow and Debt - Delta generated free cash flow of $2 billion in the first half of the year, supporting the full year expectation of $3 to $4 billion [10][29] - Total debt and finance lease obligations were reported at $15.1 billion at the end of the quarter, a reduction of $2.9 billion from the previous year [7][15] Dividend and Shareholder Returns - The company announced a 25 percent increase in its quarterly dividend, effective from the September quarter [3][10] - Delta's commitment to capital allocation includes reinvesting in the business, paying down $3 billion of debt this year, and returning cash to shareholders [10][15]

Core Viewpoint - The article discusses the significant transformation in the global tax landscape for multinational corporations driven by regulatory changes and geopolitical shifts, emphasizing the need for strategic considerations in managing intercompany financing arrangements [2][3][15]. Group 1: Economic Nationalism and Tax Implications - The post-pandemic world has seen a shift from globalization to economic nationalism, with major economies implementing policies to bring key industries back home and protect domestic tax bases [3]. - Tax authorities are increasingly scrutinizing the commercial rationale behind intercompany financing structures, especially those involving low-tax jurisdictions, leading to potential double taxation risks [3][5]. - Governments are restricting the cross-border flow of critical intellectual property and technology, impacting transfer pricing models based on intellectual property licensing [3][5]. Group 2: BEPS 2.0 and Its Impact - The OECD's Base Erosion and Profit Shifting (BEPS) initiative has evolved into "BEPS 2.0," fundamentally reshaping international taxation with two main pillars [4][6]. - Pillar One reallocates taxing rights to the market jurisdiction where customers are located, challenging traditional profit allocation to low-tax jurisdictions [6]. - Pillar Two establishes a global minimum corporate tax rate of 15%, limiting the benefits of profit shifting to low-tax jurisdictions and necessitating a reevaluation of existing financial structures [6][7]. Group 3: Complexity in Transfer Pricing and Intercompany Lending - The requirements for intercompany lending and transfer pricing documentation have become increasingly complex, necessitating comprehensive functional analyses and market-based justifications for interest rates [8]. - Companies must adopt rigorous methods to withstand stricter scrutiny, including objective credit rating assessments and consideration of local market conditions [8][11]. Group 4: Strategic Recommendations for Financial and Tax Teams - Financing structures should reflect the actual business activities and value creation locations rather than merely focusing on tax rate advantages [13]. - A reassessment of centralized financing models is recommended, considering a distributed approach that aligns better with operational layouts [13]. - Companies should maintain comprehensive documentation to demonstrate the economic substance of their financing arrangements and proactively model the impacts of proposed tax reforms [13][15].

Market Performance - Major indexes showed strength with the Dow up +217 points (+0.49%), S&P gaining +37 points (+0.61%), Nasdaq increasing +0.94%, and Russell 2000 rising +1.07% [1] Company Highlights - NVIDIA became the first corporation to reach a $4 trillion market capitalization, leading in GPUs for AI and data centers [2] - Microsoft also reached record highs, while Fastenal is trading at record highs with a valuation of 40 times forward earnings [2] - Amazon's Prime Day experienced a weak first day, down -41% compared to previous years, raising concerns about consumer spending [3] Economic Indicators - The FOMC minutes revealed differing opinions on potential interest rate cuts, with some members suggesting cuts as early as July while others recommend no cuts for 2025 [4] - President Trump threatened a +50% new tariff on Brazil, indicating ongoing trade tensions and potential inflationary pressures [5] Upcoming Reports - Key earnings reports from Delta Air Lines, Conagra, and Helen of Troy are expected, with Delta providing insights into airline travel and Conagra being a major agriculture exporter [6] - Helen of Troy's recent earnings miss and CEO replacement may indicate challenges ahead, particularly in the context of tariffs [6] Job Market Data - Weekly Jobless Claims data showed initial claims cooling down to 233K from a near-term high of 250K, while continuing claims reached 1.964 million, the highest since November 2021 [7][8] - Analysts are closely monitoring the job market, as breaching 2 million in longer-term jobless claims could shift perceptions about labor market strength [8]

Company Performance - United Airlines closed at $80.18, reflecting a -1.27% change from the previous day, underperforming the S&P 500's gain of 0.61% [1] - Over the last month, United Airlines shares decreased by 2.39%, while the Transportation sector gained 2.95% and the S&P 500 gained 3.85% [1] Upcoming Earnings Report - The company is set to release its earnings on July 16, 2025, with an anticipated EPS of $3.88, representing a 6.28% decline compared to the same quarter last year [2] - The consensus estimate for revenue is $15.31 billion, which is a 2.17% increase from the prior-year quarter [2] Annual Forecast - Zacks Consensus Estimates predict earnings of $10.15 per share and revenue of $58.71 billion for the year, indicating changes of -4.34% and +2.89% respectively compared to the previous year [3] Analyst Estimates - Recent modifications to analyst estimates for United Airlines are crucial as they reflect changing near-term business trends, with positive revisions indicating a favorable business outlook [4] - Changes in estimates are directly related to upcoming stock price performance, and investors can utilize the Zacks Rank for actionable insights [5] Zacks Rank and Valuation - United Airlines currently holds a Zacks Rank of 3 (Hold), with the EPS estimate moving 1.62% lower over the last 30 days [6] - The company has a Forward P/E ratio of 8, which is below the industry average of 10.02 [7] PEG Ratio - United Airlines has a PEG ratio of 1.35, compared to the Transportation - Airline industry's average PEG ratio of 0.88 [8] Industry Context - The Transportation - Airline industry is ranked 150 in the Zacks Industry Rank, placing it in the bottom 40% of over 250 industries [9] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Group 1 - Alaska Air Group Inc. will hold its quarterly conference call to discuss the second quarter financial results for 2025 on July 24, 2025, at 11:30 a.m. EDT/8:30 a.m. PDT [1] - The company will file its second-quarter results and outlook after market close on July 23, 2025 [2] - Alaska Air Group operates subsidiaries including Alaska Airlines, Hawaiian Airlines, and Horizon Air, with a network covering over 140 destinations across North America, Latin America, Asia, and the Pacific [3] Group 2 - Alaska Airlines is a member of the oneworld Alliance, with Hawaiian Airlines scheduled to join in 2026, allowing guests to earn and redeem miles for travel to over 1,000 worldwide destinations [3] - The company is traded on the New York Stock Exchange (NYSE) under the ticker symbol "ALK" [3]