Delta Air Lines Is About to Report Its Earnings Next Week. Here Is What to Expect
Delta Air Lines (DAL), an American carrier, is set to release its Q1 results on April 9. DAL stock has declined over 36% year-to-date, primarily due to weakened travel demand amid economic uncertainty, the impact of newly imposed tariffs, and analyst downgrades. Wall Street analysts expect the company to report earnings of $0.44 per share, representing a 2.2% decrease year-over-year.
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Meanwhile, revenues are expected to decline by 4.9% from the year-ago quarter to $13.07 billion, according to data from the TipRanks Forecast page.
Recent Event Ahead of Q1 Print
On March 10, the airline giant cut its revenue and margin outlook for Q1 2025, blaming a drop in consumer and corporate confidence amid economic uncertainty.
It now expects Q1 EPS between $0.30 and $0.50, down from its previous forecast of $0.70 to $1.00. The company also lowered its revenue growth estimate for the March quarter to 3%-4% year-over-year, compared to its initial projection of 7%-9% growth.
Analysts' Views Ahead of DAL's Q1 Earnings
Ahead of Delta Air Lines' Q1 earnings, Raymond James analyst Savanthi Syth lowered her price target on the stock from $80 to $62, but still rates the stock as a Buy. Syth says Delta made the biggest cut to its Q1 forecast after setting high hopes early on.
Still, she sees Delta having key edges over other big airlines, like better profit margins, a strong balance sheet, and careful financial planning. The analyst believes these factors could help keep its earnings more stable.
Also, BofA analyst Andrew Didora reduced the price target for Delta Air Lines from $65 to $56 per share but maintained a Buy rating. The analyst notes that airline demand has been slowing since February, and this trend is expected to continue into 2025, putting pressure on the industry. As a result, BofA has cut its earnings estimates, now expecting lower airline profits in 2025 than what companies had predicted.
Options Traders Anticipate a 6.83% Move
Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 11.68% move in either direction.
Is Delta Stock a Good Buy Right Now?
Turning to Wall Street, Delta Air Lines stock has a Strong Buy consensus rating based on 13 Buys and two Holds assigned in the last three months. At $71.20, the average DAL price target implies 83.93% upside potential.
See more DAL analyst ratings
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