Nucor earnings beat by $0.08, revenue fell short of estimates
On Tuesday, Raymond (NSE:RYMD) James affirmed a Strong Buy rating on Delta Air Lines (NYSE:DAL) with a steady price target of $80.00. The airline, currently valued at $37.5 billion, has demonstrated strong financial performance with a P/E ratio of 10.86x. According to InvestingPro analysis, Delta appears undervalued based on its Fair Value metrics. Delta’s Senior Vice President of Network Planning, Pricing, & Revenue Management, Joe Esposito, spoke at the Raymond James 46th Annual Institutional Investors Conference on Monday. He discussed the airline’s ongoing strategy, highlighting investments in personnel and assets that have been essential for network restoration and growth in recent years.
Delta is poised to continue reaping the benefits of over a decade’s worth of product and network investments, which have contributed to robust premium service trends. Despite this, Delta anticipates its first-quarter earnings per share (EPS) for 2025 may fall towards the lower end of its guidance, though analysts project full-year EPS of $7.74. This is attributed to a dip in domestic corporate travel in February, influenced by a decrease in government travel, adverse weather conditions, and temporary booking challenges following the Endeavor/PSA crashes.
Nevertheless, the outlook for the spring travel period is promising, with strong demand expected over Spring Break. This is further supported by a favorable industry capacity landscape, characterized by significant reductions in price-sensitive capacity and in the capacity at Delta’s core hubs. For deeper insights into Delta’s financial health and additional ProTips, visit InvestingPro, where you’ll find comprehensive analysis and the exclusive Pro Research Report.
The presentation emphasized that while short-term fluctuations present challenges, Delta’s long-term strategy and outlook remain robust. The company’s focus on strengthening its network and services is expected to continue driving positive trends, despite the temporary setbacks experienced in the early part of the year.
In other recent news, United Airlines reported strong fourth-quarter earnings, with earnings per share of $3.26, surpassing the analyst consensus of $2.93. The company’s revenue also exceeded expectations, reaching $14.7 billion compared to the forecasted $14.34 billion. Following this positive earnings report, shares of major airlines, including American Airlines (NASDAQ:AAL), Delta Air Lines, and Southwest Airlines (NYSE:LUV), saw an increase in after-hours trading. Delta Air Lines has been in focus as Citi analysts reiterated a Buy rating, raising the price target to $80, citing higher revenue per available seat mile and slightly lower expected long-term fuel prices. Additionally, Bernstein analysts maintained an Outperform rating for Delta Air Lines, highlighting robust demand in premium, international, and corporate travel sectors, with fourth-quarter 2024 earnings exceeding expectations.
Delta Air Lines reported an adjusted diluted EPS of $1.85 for the fourth quarter of 2024, surpassing both consensus and Bernstein’s forecasts. The airline’s adjusted revenue reached $14.4 billion, led by a 6% year-over-year growth, and corporate sales showed double-digit increases. Delta canceled around 400 flights due to freezing weather in the Gulf Coast and Southeast regions, as temperatures remained below freezing, affecting operations. The airline is working to resume services safely, implementing ground delay programs to manage inbound traffic. These developments reflect ongoing challenges and opportunities within the airline industry, with analysts closely monitoring performance metrics and external factors like weather and fuel prices.
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