Yahoo Finance Delta Air Lines, Inc. Annual Results: Here's What Analysts Are Forecasting For Next Year
Investors in Delta Air Lines, Inc. (NYSE:DAL) had a good week, as its shares rose 4.5% to close at US$61.88 following the release of its annual results. Delta Air Lines reported US$47b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$7.30 beat expectations, being 3.9% higher than what analysts expected. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether analysts have changed their earnings models, following these results.
Check out our latest analysis for Delta Air Lines
Taking into account the latest results, the current consensus from Delta Air Lines's 17 analysts is for revenues of US$48.7b in 2020, which would reflect a credible 3.6% increase on its sales over the past 12 months. Statutory per share are forecast to be US$7.29, approximately in line with the last 12 months. Before this earnings report, analysts had been forecasting revenues of US$49.0b and earnings per share (EPS) of US$7.18 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$69.06, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Delta Air Lines analyst has a price target of US$90.00 per share, while the most pessimistic values it at US$61.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. Analysts are definitely expecting Delta Air Lines's growth to accelerate, with the forecast 3.6% growth ranking favourably alongside historical growth of 3.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, analysts also expect Delta Air Lines to grow faster than the wider market.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target held steady at US$69.06, with the latest estimates not enough to have an impact on analysts' estimated valuations.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Delta Air Lines going out to 2024, and you can see them free on our platform here.
You can also view our analysis of Delta Air Lines's balance sheet, and whether we think Delta Air Lines is carrying too much debt, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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