Here's a quick summary of DAL for you.
- Generated double-digit operating margin in December quarter with EPS ahead of guidance [Positive]
- Expect March quarter revenue to accelerate further relative to 2019 [Positive]
- Reiterating outlook for significant earnings and cash flow growth in 2023, including EPS of $5 - $6 and free cash flow of more than $2 billion [Positive]
- Growing 2023 revenue by 15 to 20 percent and improving unit costs year-over-year [Positive]
- Full-year outlook for earnings of $5 to $6 per share and keeping on track to achieve more than $7 of earnings per share in 2024 [Positive]
- Strong customer satisfaction scores and increasing brand preference in 2022 [Positive]
- Operating revenue of $13.4 billion in December Quarter 2022 [Positive]
- Operating income of $1.5 billion with an operating margin of 10.9 percent in December Quarter 2022 [Positive]
- Operating cash flow of $1.2 billion in December Quarter 2022 [Positive]
- Operating revenue of $50.6 billion in Full Year 2022 [Positive]
For Q4 earnings, Delta Air Lines had a successful December quarter and full year 2022, with operating margin, EPS, revenue, operating income, and operating cash flow, all ahead of guidance. They are also projecting continued growth in the coming year, which is expected to be positive for the company's stock price.
Additional comments:
As COVID lockdowns are coming to an end globally, airlines are expected to make a come back as demand will exceed supply.
What do you think will happen to the airlines in 2023?
In Investing Accelerator weekly coaching call this week, we did a comparison between Southwest Airlines LUV vs Delta Airlines (DAL)
Cheers,
Eric Seto, CPA
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