Delta Stock Likely to Enjoy the Good Road Ahead

One of the United States oldest and major airlines, Delta Air Lines, Inc. released its financial results of Q3 2022 till September on 13th October 2022. The earnings were around what analysts estimated prior to the financial release. Given the revival of travel and tourism all over the world, the airline space came back on track. Delta Air Lines received its own share making a good impact on Delta (DAL) stock price.

The earnings release of Delta confirms the gradual growth of the company as well as the overall airline sector. Financial report noted the third quarter’s growth as well as the future outlook of the upcoming quarter of this year.

Financial Reports Moving Delta Stock Price

Delta reported its operating revenue for Q3 2022 remained 12.8 billion USD while the operating income was over 1.5 billion USD. In comparison to the previous quarter, it is relatively high where the former was 12.3 billion USD and the latter was 1.4 billion USD. The EPS also saw an increase from 1.44 USD in the second quarter to 1.51 USD the third quarter. Delta stock price witnessed a slight movement around the earnings release.

On 12 October 2022—the day before the Q3 financial release—Delta (DAL) stock price was at 29.21 USD while on the very next day it increased a bit and was trading at 30.38 USD. Currently Delta stock is at 33.92 USD with an uptick of 2.13%.

The stock price of Delta Airlines is up by over 20% from its last month’s trading price. However, the stock price fell over 20% in the last six months and more than 16% in a year.

source – TradingView

The Georgia based airline company, despite stock price movement throughout the last year or so, is expecting better financials for the ongoing quarter, which will be available in the Q4 2022 financial release in January 2022. The company has estimated its EPS remains between 1 USD to 1.25 USD while the operating revenue to see an increase of 5 to 9%.

Analysts also forecasted good grades for the company in the long term. TradingView analysts forecasted the target price for Delta stock between 74 USD and 35 USD with an average price of 47.69 USD. While the stock was given a “strong buy” rating.

The earning report also highlighted several key points showcasing the overall financial growth of the company in recent years. For instance, the Delta financial report noted the domesting passenger revenue up by 2% while the international passenger revenue remained 97% higher from Q3 September 2019.

Meanwhile the revenue from cargo remained 240 million USD—27% more than its revenue in 2019. MRO revenue was 221 million USD with a 4% growth since 2019.

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