Delta Air Lines shares rise on optimistic forecasts
2022.12.14 08:28
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Delta Air Lines shares rise on optimistic forecasts
Budrigannews.com – Portions of Delta Aircrafts (NYSE:) are up about 4.5 percent in pre-market trading on Wednesday after the company provided better-than-anticipated 2023 guidance and raised its forecast for the fourth quarter.
Delta anticipates adjusted EPS between $1.35 and $1.40 for this quarter, which is higher than the consensus of $1.15 and up from the previous range of $1.00 to $1.25. From the previous estimate of 5% to 9%, revenue is expected to increase by 7% to 8%.
“As we rebuild the airline with the best performance in the world, 2022 is proving to be a pivotal year. “We were able to navigate challenges while continuing to strengthen our competitive advantages and enhancing the power of our trusted consumer brand thanks to the exceptional work of our people,” stated Chief Executive Officer Ed Bastian.
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The revised Q4 guidance elevates the FY2022 adjusted EPS above the consensus estimate of $2.89 to $3.07-$3.12. Income is presently seen between $45.5 billion and $45.6B.
For FY2023, DAL sees changed EPS in the scope of $5-$6 on income development of 15%-20% comparative with 2022. Adjusted earnings were anticipated by analysts to be $4.80. Additionally, the airline stated that it anticipates generating over $2 billion in FCF, which will permit “further debt reduction.”
Bastian added, “Delta’s momentum is building as we exit the year and demand for air travel remains robust.”
Additionally, DAL reiterated its expectation for earnings of over $7 per share in 2024.
