Delta Air Lines beats by $0.04, reports revs in-line; guides Q1 EPS below consensus (47.75)
- Reports Q4 (Dec) earnings of $1.30 per share, excluding non-recurring items, $0.04 better than the S&P Capital IQ Consensus of $1.26; revenues rose 5.0% year/year to $10.74 bln vs the $10.71 bln S&P Capital IQ Consensus. Total unit revenues excluding refinery sales (TRASM, adjusted) increased 3.2% during the period driven by healthy leisure and corporate demand offsetting an approximately 0.5 point headwind from unfavorable foreign exchange rates.
- ON January 3, co raised EPS to $1.25-1.30 from $1.10-1.30, pre-tax margin to 10-11% from 9-11% and lowered unit rev to 3% from 3.5%.
- Co issues downside guidance for Q1, sees EPS of $0.70-0.90, excluding non-recurring items, vs. $0.95 S&P Capital IQ Consensus; adj. TRASM +0-2%, adj. CSM +1-2%. pre-tax margin 6.5-8.5%.
- "Our March quarter adjusted unit revenue growth is expected to be flat to up two percent including impacts from the timing of Easter, increasing currency headwinds, and the ongoing government shutdown.