DAL Stock: Delta Air Lines Raises 2023 Guidance and Reaffirms 2024 Outlook

Delta Airlines (DAL) raised its outlook for 2023 and maintained its financial view for 2024 in a presentation for Investor Day early Tuesday. DAL stock rose on Tuesday after the announcement.

X

Delta Airlines expects earnings for the 2023 fiscal year, which ends Dec. 31, at the end of its previous forecast, which ranged between $5 and $6 per share. The carrier expects free cash flow at $3 billion for the year, up from its previous forecast of $2 billion. Delta expected operating margins to be between 10% and 12%, which was the high end of its previous forecast.

The company also expects a return on invested capital, or ROIC, of ​​greater than 13%, compared to its previous forecast of double-digit gains. For fiscal year 2024, Delta called for earnings per share of greater than $7 with more than $4 billion in free cash flow. Delta expects an operating margin of between 13% and 15% and an ROIC in the mid-teens.

Further, the company raised its second-quarter revenue forecast to a growth range of 17% to 18%. It had projected growth of between 15% and 17%. For the current fiscal year, Delta boosted its revenue forecast to growth of 17% to 20%, compared to a previous forecast of a jump of 15% to 20%.

The midpoint of Delta’s revenue presentation in 2023 is $54 billion. Delta’s presentation listed a “long-term goal” of more than $60 billion in total revenue.

DAL stock analysts polled by FactSet called fiscal 2023 earnings at $5.88 per share on revenue of $53.64 billion. Analysts expect 2024 financial earnings of $7.12 per share on $55.79 billion in sales.

United and American Airlines competitors are bypassing the point of purchase

Elsewhere, competing carriers United Airlines (UAL) And American Airlines (AAL) were skipping point of purchase for their handle cup coasters.

UAL stock jumped back above 54.05 buy points from its base on Tuesday after briefly surpassing the entry on June 19. The stock bounced off its 10-day moving average during Monday’s trading. UAL shares rose 5.1% on Tuesday.

AAL stock rose above the buy point of 16.72 on Tuesday. American Airlines also skipped its June 19 entry. The stock bounced off the 10-day line and held the other major moving averages. AAL stock advanced 5.5% on Tuesday.

DAL arrow

Delta shares fell 6.8% on Tuesday after the outlook update. Shares surpassed the 40.30 entry for Cup Rule on June 13 after a significant increase in late May. The current breakout extends beyond the buy zone which extended to 42.31.

DAL stock is up more than 40.3% so far this year.

You can follow Harrison Miller for more stock news and updates on Twitter @employee

You may also like:

Best Growth Stocks to Buy and Watch: See updates to IBD stock listings

Looking for the next big stock market winners? Get started with these three steps

Learn how to time the market with IBD’s ETF market strategy

Short-term trades can add up to significant profits. IBD’s SwingTrader shows you how.

The market is rising from the main level; What are you doing now