Let's see if higher highs are in store for Delta Air Lines (DAL) stock after reporting strong Q4 results last Friday.
We assess the investment worthiness of DAL stock post its fourth-quarter 2024 results.
Delta Air Lines (NYSE: DAL) recently reported its Q4 results, with revenues and earnings exceeding the street estimates. The company reported adjusted revenue of $14.4 billion and earnings of $1.85 on a per share and adjusted basis, compared to the consensus estimates of $14.2 billion and $1.76, respectively.
Why investors should use the Zacks Earnings ESP tool to help find stocks that are poised to top quarterly earnings estimates.
Megacap tech companies contributed much of the gains that the S&P 500 (^GSPC 0.16%) index saw in 2024. After all, how much impact can dividend payments of a couple of percentage points have when the largest growth stocks are producing epic double-digit (and sometimes triple-digit) percentage returns?
Delta Air Lines released strong Q4 FY24 and full-year earnings, with operating revenue of $61.6 billion and adjusted EPS of $6.16, driving a 10% stock rally. Initiating coverage with a Strong Buy rating and a $97.15 price target, representing a 45% upside, due to Delta's operational excellence and premium revenue strategy. Delta's diversified revenue streams, margin expansion opportunities, and favorable industry conditions support a promising pathway to mid-teens operating margins and superior financial performance.
Delta Air Lines remains a top stock pick for 2025, showing strong earnings growth and outperforming the S&P 500 since my recommendation. Q4 2024 earnings report highlights Delta's effective capacity and revenue management, with significant growth in premium product ticket sales and strong off-peak income. Delta expects 10% EPS growth and at least 17.5% free cash flow growth in 2025, supported by increased capacity and positive demand effects.
Delta Air Lines NYSE: DAL can fly to new highs in 2025 because the company continues to grow, cash flow is improving, the balance sheet strengthens, and capital returns are flowing. The takeaway from the Q4 report is that business remains strong on all fronts, costs are controlled, and results are better than expected, including better-than-forecast guidance.
Delta Air Lines said on Friday that departures and arrivals at its Hartsfield-Jackson Atlanta hub have resumed after extreme winter weather forced the closure of all five runways for more than two hours.
Delta Air Lines boosted its 2025 outlook thanks to continued increased travel demand. Transcript: Conway Gittens: Stocks are getting roughed up Friday as a stronger-than-expected jobs report pushes hopes for the next interest rate cut all the way to October 2025.
Delta Air Lines, Inc. (NYSE:DAL ) Q4 2024 Earnings Conference Call January 10, 2025 10:00 AM ET Company Participants Julie Stewart - Vice President, IR Ed Bastian - CEO Glen Hauenstein - President Dan Janki - CFO Peter Carter - EVP, External Affairs Tim Mapes - SVP & Chief Communications Officer Conference Call Participants Catherine O'Brien - Goldman Sachs Brandon Oglenski - Barclays Conor Cunningham - Melius Research Tom Fitzgerald - TD Cowen Jamie Baker - JPMorgan Duane Pfennigwerth - Evercore ISI Shannon Doherty - Deutsche Bank Ravi Shanker - Morgan Stanley Andrew Didora - Bank of America David Vernon - Bernstein Savi Syth - Raymond James Sheila Kahyaoglu - Jefferies Leslie Josephs - CNBC Alison Sider - Wall Street Journal Mary Schlangenstein - Bloomberg News Operator Good morning, everyone, and welcome to the Delta Air Lines December Quarter and Full-Year 2024 Financial Results Conference Call. My name is Matthew, and I'll be your coordinator.
U.S. stocks traded lower toward the end of trading, with the Nasdaq Composite falling over 400 points on Friday.