Delta Airlines Inc.
(
DAL
) is slated to report its second-quarter 2014 results on Jul 23,
before the market opens. In the last quarter, the company had
delivered a 13.79% positive earnings surprise. Moreover, the
trailing four quarter average beat is pegged at 6.34%. Let’s see
how things are shaping up prior to this announcement.
Factors Influencing Results this Quarter
We remain encouraged by Delta’s commitment to consistently
improve operational performance, enhance customer experience and
increase shareholder returns through balanced capital investments.
Strong domestic market, capacity discipline, cost control measures
and customer-focused initiatives are expected to boost the
company’s topline.
On the service front, Delta offers flat-bed seats in
BusinessElite on every international destination along with
on-demand entertainment across all seats, thus adding to passenger
comfort and value.
Moreover, this premier passenger carrier has fortified its
position in Seattle by adding several international and domestic
routes, and is building the coastal city as a key part of its
Pacific network restructuring. Further, the acquisition of Virgin
Atlantic has strengthened Delta’s trans-Atlantic operations.
Earnings Whispers?
Our proven model does not conclusively show that Delta Airlines
is likely to beat earnings. This is because a stock needs to have
both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2
(Buy) or 3 (Hold) for this to happen. Unfortunately, that is not
the case here as elaborated below.
Zacks ESP:
, which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, stands at 0.00% for
Delta Airlines.
Zacks Rank:
Delta Airlines carries a Zacks Rank #1 which increases the
predictive power of ESP. But when combined with ESP of 0.00%, it
makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revision momentum.
Other Stocks to Consider
Here are some other companies to consider as our model shows
that these have the right combination of elements to post an
earnings beat this quarter:
Allegiant Travel Group Inc.
(
ALGT
), with earnings ESP of +6.40% and a Zacks Rank #1.
Southwest Airlines Co
(
LUV
), with earnings ESP of +3.39% and a Zacks Rank #1.
Alaska Air Group Inc.
(
ALK
), with earnings ESP of +0.92% and a Zacks Rank #1.
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SOUTHWEST AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis
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