Why Shares Of Delta Air Lines Are Down By 3% Today?The stock is up by 17% year-to-date.
Delta Air Lines Video 15.04.21.
Delta Air Lines Stock Moves Lower After After Quarterly Report Misses Estimates
Shares of Delta Air Lines found themselves under pressure after the company released its quarterly report.
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Delta Air Lines reported revenue of $3.6 billion and GAAP loss of $1.85 per share, missing analyst estimates on both earnings and revenue. The company noted that “acceleration in demand supported positive cash generation in the month of March”, which was a notable positive development given the current market environment.
Delta Air Lines also stated that it expected positive cash generation for the June quarter in case current trends remained intact. In addition, Delta Air Lines believes that it has a chance to return to profitability in the third quarter.
The company noted that current domestic leisure bookings have reached 85% of levels seen in 2019. Obviously, international travel remains under strong pressure, and the continued problems on this front hurt Delta Air Lines’ bottom line.
What’s Next For Delta Air Lines?
Shares of Delta Air Lines had a strong start of this year as investors bet that demand for air travel will rise fast. This increase in demand is seen in the domestic market thanks to the successful mass vaccination program, but the situation on the international front remains challenging.
The company managed to get back to positive cash generation in the last month of the quarter, but it looks that this was already priced in, and the market wanted to see stronger results. It should be noted that Delta Air Lines shares have moved closer to pre-pandemic levels in recent months, so investors will likely start to pay more attention to the company’s financial results.
While the company’s earnings report was somewhat disappointing, the stock has decent chances to get back to recent highs as the summer season will likely bring positive results in the domestic market segment.
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