Delta Air Lines, (NYSE: DAL)
On Tuesday, Delta Air Lines reported strong fourth quarter and full fiscal year 2015 earnings that pushed the company’s stock up more than 3% while broader markets remained weak. The strong 2015 results were driven by lower fuel costs, which the company expects will continue and will also bolster 2016 earnings.
For the fourth quarter of 2015, Delta reported revenue of $9.5 billion and net profit of $980 million as compared to fourth quarter of 2104 revenue of $9.6 billion and a net loss of $712 million. For the full fiscal year 2015 the company reported revenue of $40.7 billion and net income of $4.5 billion as compared to 2014 results of $40.4 billion and $660 million respectively. Yahoo Finance
Delta CEO Comments
In the company press release, Richard Anderson, Delta’s chief executive officer noted:
“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. 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
On Tuesday Delta stock gapped up to open at $45.80 and quickly shot above pre-market highs and just as quickly dropped back below opening highs and remained below that level for first 30 minutes of trading. DAL found support near $45.50 and made a run to high of day at $46.75 before pulling back. For the balance of the day the stock mostly traded in a range between $45.50 and $46.50 and closed the day below all the important moving averages at $45.96. For a possible long trade, I will watch for early strength that keeps the stock above pre-market highs, VWAP and the 9-minute and 20-minute moving averages. If DAL opens strong, the first level of resistance is Tuesday’s high of $46.75 with more at $47 and possible reversal or pullback at $47.50, depending on price action and market strength. If the market is bullish and DAL gets through its 20-day EMA at $47.84, there is room to run to $48.95. On bearish price action, I will watch for possible support at $45.80 and $45.36. On a break of Tuesday’s low of $45.19, there may be support at $44.50 and $44.00, and a breach of long-term support near $43.50 could open the doors for a flush.
Delta Company Profile
Delta Air Lines, Inc. (Delta) provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company’s route network is centered on a system of hub and international gateway airports that it operates in Amsterdam, Atlanta, 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’s segments include its Airline segment and Refinery segment. The Company’s Airline segment provides scheduled air transportation for passengers and cargo and other ancillary airline services, including maintenance and repair services for third-parties. Its Refinery segment provides jet fuel to the airline segment from its own production and through jet fuel obtained through agreements with third-parties. Google Finance
