Delta (NYSE: DAL) recently reported its Q3 results, with revenues falling in line and earnings beating our estimates. The company reported adjusted revenue of $14.6 billion, up 18% y-o-y. Its adjusted earnings of $2.03 per share were up 34% y-o-y and above our estimate of $1.98 per share. In this note, we discuss Delta’s stock performance, some key takeaways from its recent results, and its valuation.
DAL stock has seen a decline of 10% from levels of $40 in early January 2021 to around $35 now, vs. an increase of about 15% for the S&P 500 over this roughly 3-year period. However, the decrease in DAL stock has been far from consistent. Returns for the stock were -3% in 2021, -16% in 2022, and 4% in 2023. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 13% in 2023 – indicating an underperformance for the ticker in 2021 and 2023.
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