Delta Air Lines (NYSE:DAL) is scheduled to announce its Q4 earnings tomorrow, January 13. The recovery in demand for leisure and commercial travel might have supported the company’s quarterly performance.
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Last month, the company updated expectations for the fourth quarter. Delta said it expects adjusted EPS in the range of $1.35 to $1.40, up from the prior guidance of $1.00 to $1.25, citing “continued strong demand” as the key reason.
Currently, the Street expects Delta to post earnings of $1.33 per share in Q4, significantly higher than $0.22 in the prior-year period. Meanwhile, revenue expectations are pegged at $12.2 billion, representing a year-over-year jump of 28.4%.
However, the airline company had to cancel several of its flights due to bad weather during the peak holiday season. Also, Delta offered massive pay hikes to the pilots, which could have impacted its Q4 numbers to some extent.
Ahead of Delta’s Q4 earnings release, Barclays analyst Brandon Oglenski raised DAL stock’s price target to $44 from $38, while maintaining a Buy rating on the stock. The analyst is of the opinion that in 2023 airline stocks could benefit from “better leveraging of cost structures, lower than feared energy prices, and a still recovering travel economy.”
Is DAL Stock a Buy or Sell?
Overall, Delta has a Strong Buy consensus rating based on 13 Buys and one Hold. The average DAL stock price target of $50.64 implies 32.6% upside potential. The stock has gained nearly 31% in the past three months.
