Delta Air shares gain for a second session in a row on Wednesday, third-quarter earnings outstrip expectations despite storms

October 12, 2017 7:55 am

Delta Air Lines Inc (DAL), the second largest carrier in the United States by passenger traffic, reported better-than-anticipated quarterly earnings yesterday, despite the negative impact from severe weather. There had been concerns among investors that the hurricane season, which included three back-to-back storms, would have had a stronger influence on profitability.

Delta Air shares closed higher for a second consecutive trading session on Wednesday. The stock went up 0.70% ($0.37) to $53.07, after touching an intraday high at $53.97, or a price level not seen since July 19th ($54.34).

In the week ended on October 8th the shares of the transportation company added 7.86% to their market value compared to a week ago, which marked the best performance since the week ended on November 13th 2016.

The stock has extended its advance to 10.06% so far during the current month, following a 2.18% surge in September. The latter has been the first gain out of three months.

For the entire past year, Delta Air shares retreated 2.96%. However, the stock has risen 7.89% so far in 2017.

Delta Air’s adjusted earnings were reported at $1.57 per share during the third quarter, which exceeded the median forecast by analysts ($1.53 per share).

The carrier’s operating revenue grew 5.5% to $11.1 billion during the latest quarter, which also reflected a $140 million reduction due to the hurricanes.

On the other hand, the company’s adjusted pre-tax income was reported to have shrunk 9.5% to $1.7 billion during the third quarter compared to the same period a year earlier, due to a $120 million negative impact from Hurricane Irma.

Meanwhile, Delta’s passenger unit revenue went up 1.9% during the latest quarter, while its capacity grew 1.6%.

The carrier now expects that its fourth-quarter passenger unit revenue to increase at an annual rate of between 2% and 4%, while its operating margin to be between 11% and 13%.

According to CNN Money, the 18 analysts, offering 12-month forecasts regarding Delta Air’s stock price, have a median target of $62.00, with a high estimate of $75.00 and a low estimate of $50.00. The median estimate is a 16.83% surge compared to the closing price of $53.07 on October 11th.

The same media also reported that 16 out of 20 surveyed investment analysts had rated Delta Air’s stock as “Buy”, while 1 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Delta Air stock are presented as follows:

R1 – $53.20
R2 – $53.34
R3 (Range Resistance – Sell) – $53.47
R4 (Long Breakout) – $53.87
R5 (Breakout Target 1) – $54.33
R6 (Breakout Target 2) – $54.54

S1 – $52.94
S2 – $52.80
S3 (Range Support – Buy) – $52.67
S4 (Short Breakout) – $52.27
S5 (Breakout Target 1) – $51.81
S6 (Breakout Target 2) – $51.60

By using the traditional method of calculation, the weekly levels of importance for Delta Air Lines Inc (DAL) are presented as follows:

Central Pivot Point – $50.81
R1 – $53.72
R2 – $55.43
R3 – $58.34
R4 – $61.25

S1 – $49.10
S2 – $46.19
S3 – $44.48
S4 – $42.71

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