Delta Air Lines, Inc. ($DAL) Stock | Stock Surges Up On Mixed Earnings Results


Delta Air Lines, Inc. (NYSE: DAL)



Delta Air Lines, Inc. (DAL), an airlines company yesterday announced fourth quarter and full year 2015 financial results. DAL reported fourth quarter adjusted pre tax income of $1.45 billion a 42% increase over the previous years fourth quarter. DAL reported full year 2015 adjusted pre tax income of $5.9 billion a 29% increase over 2014. DAL reported earnings of $1.18 per share which was lower than analyst expectations of $1.19. DAL reported total revenues of $9.5 billion down 1.5% year over year, and missing analyst expectations of $9.61 billion.


Delta Air Lines, Inc. CEO’s Comments

“Our 2015 performance was a record for Delta on all fronts – with industry-leading operational performance, superior customer satisfaction, and a $5.9 billion adjusted pre-tax profit.  These results show the commitment of the Delta people to running the best airline in the world every day.  It’s an honor to reward their performance with $1.5 billion in profit sharing for the year,” said Richard Anderson, Delta’s chief executive officer.  “As we look ahead to 2016, we have a significant opportunity to improve our performance even further.  With over $3 billion in potential savings from lower fuel prices and numerous commercial, operational and cost initiatives already in place, we expect to again perform in the top tier of the S&P Industrials on earnings growth, margins, and cash flows this year despite global economic challenges.”  PR Newswire


DAL Technical Analysis

DAL Chart

DAL gapped up in price yesterday to $45.71, up from the prior day’s close of $44.50, which is a 3% increase in price. Taking a look at the daily chart, we can see the last time DAL traded above this price level was on January 12th when it traded at $46.96. Taking a closer look at the daily chart we can see that DAL has been on an overall decline dating back to December 29th when it traded at $52.19, or equivalent to a 15% drop in price (based on Friday’s closing price).  DAL has a float of 785.09 million shares and is trading 1.5 times the normal daily trading volume. DAL reached pre market highs of $46.10, but gave back $0.39 at the open. For trading purposes, my entry point would have been  $45.75 looking for a run through $46. My stop loss would have been $45.60, fearing anything below that and the stock would start to fill in the gap up.


Company Profile

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo worldwide. The company operates in two segments, Airline and Refinery. Its route network comprises various gateway airports in Amsterdam, Detroit, Los Angeles, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, Seattle, and Tokyo-Narita. The company sells its tickets through various distribution channels, including mobile and telephone reservations,, traditional brick and mortar, and online travel agencies. It also provides maintenance and repair services for third parties, as well as offers staffing services, professional security and training services, and aviation solutions; vacation packages; and aircraft charters, and aircraft management and programs. As of December 16, 2015, the company operated a fleet of approximately 800 aircraft. Delta Air Lines, Inc. was founded in 1924 and is headquartered in Atlanta, Georgia.  Yahoo Finance