Delta Air Lines raised its 2023 outlook and maintained its fiscal 2024 view in an investor day presentation early Tuesday. DAL stock surged Tuesday following the announcement.
Delta Air Lines expects earnings for fiscal 2023, which ends Dec. 31, at the top end of its prior expectations, which ranged from $5 to $6 per share. The carrier sees free cash flow at $3 billion for the year, up from its previous outlook of $2 billion. Delta predicted operating margins of 10% to 12%, the top end of its previous forecast.
The company also expects a return on invested capital, or ROIC, greater than 13%, compared with its earlier forecast of double-digit gains. For fiscal 2024, Delta called for earnings per share greater than $7 with more than $4 billion in free cash flow. Delta expects an operating margin between 13% and 15% and ROIC in the mid-teens.
Further, the company raised its second-quarter revenue outlook to a growth range of 17% to 18%. It had predicted 15% to 17% growth. For the current fiscal year, Delta boosted its revenue outlook to 17% to 20% growth, compared with the prior forecast of a 15% to 20% jump.
The midpoint of Delta's 2023 revenue view is $54 billion. Delta's presentation listed a "long-term goal" of generating more than $60 billion in total revenue.
DAL stock analysts polled by FactSet had called for fiscal 2023 earnings at $5.88 per share on $53.64 billion in revenue. Analysts expect fiscal 2024 earnings of $7.12 per share on $55.79 billion in sales.
Rivals United, American Airlines Surpass Buy Points
Elsewhere, rival carriers United Airlines and American Airlines were moving past buy points for their respective cup-with-handle bases.
UAL stock jumped back above the 54.05 buy point for its base Tuesday after briefly surpassing the entry on June 19. Shares bounced from their 10-day moving average during trading Monday. UAL stock climbed 5.1% Tuesday.
AAL stock surged above its 16.72 buy point Tuesday. American Airlines also eclipsed its entry on June 19. Shares bounced off their 10-day line and holding their other key technical moving averages. AAL stock advanced 5.5% Tuesday.
DAL Stock
Delta shares bolted 6.8% Tuesday following the outlook updates. Shares surpassed the 40.30 entry for a cup base on June 13 after a major run-up in late May. The current breakout is extended beyond the buy zone, which stretched to 42.31.
DAL stock has soared more than 40.3% so far this year.
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