Delta Air Lines (NYSE:DAL) is scheduled to release its fourth-quarter and full-year 2023 results on January 12. Strong domestic demand and rising international travel might have supported the company’s quarterly performance. However, high fuel costs are likely to have impacted DAL’s bottom-line growth. Investors should note that five analysts have reaffirmed their Buy ratings on the stock recently, showing optimism ahead of the Q4 earnings.
Overall, the Street expects Delta to post Q4 earnings of $1.17 per share, down 20.9% from the prior-year quarter. Meanwhile, sales estimates are pegged at $13.55 billion, representing a marginal increase over the same period last year.
Last month, the company reiterated its Q4 outlook as it witnessed robust travel demand over the Thanksgiving holiday period. Delta expects revenue growth between 9% and 12%. Further, Q4 EPS is expected to be in the range of $1.05 and $1.30.
Q4 Earnings: Here’s What Analysts Are Saying
Yesterday, Barclays analyst Brandon Oglenski maintained a Buy rating on DAL stock and raised the price target to $52 (23.5% upside potential) from $50. The analyst is optimistic about the company’s performance in 2024, with support from growth in domestic capacity.
Another analyst, Andrew Didora of Bank of America Securities, reiterated a Buy rating on the stock with a price target of $50 (18.7% upside). The analyst predicts revenues to remain strong in 2024, driven by a rebound in international demand and continued strength in the domestic market. Nevertheless, he expects maintenance expenses to weigh on the company’s bottom line.
Also, TD Cowen analyst Helane Becker expects strong year-end traffic to have aided DAL’s performance in Q4. Further, Becker believes Delta is poised for sustained growth in 2024, driven by its robust domestic network and strategic expansion into key Pacific and Atlantic markets.
Becker reaffirmed a Buy rating on DAL with a price target of $49, which implies 16.4% upside potential.
Is DAL a Good Stock to Buy Now?
Overall, Delta has a Strong Buy consensus rating based on 12 unanimous Buys. The average DAL stock price target of $55.92 implies 32.8% upside potential. The stock has declined nearly 13% in the past six months.
Insights from Options Trading Activity
TipRanks now presents options activity to help investors plan their trades ahead of earnings releases. Options traders are expecting that DAL stock will move by +/-4.37% after reporting earnings. The anticipated earnings move is determined by computing the at-the-money straddle of the options closest to the expiration after the earnings announcement.
