Delta Airlines (New York Stock Exchange: Dal) fell in pre-market trading after the release of calendar fourth-quarter and fiscal year 2023 results. The company's earnings forecast for fiscal 2024 was lower than prior expectations. The company expects adjusted earnings for fiscal 2024 to be in the range of $6 to $7 per share. That's lower than the more than $7 per share earnings Delta expected last year. The company expects first-quarter 2024 revenue to increase 3% to 6% year over year. Additionally, the company expected March quarter earnings to be in the range of $0.25 to $0.50 per share, in line with analyst expectations.
Delta Air Lines reported adjusted earnings of $1.28 per share for the December quarter, beating analysts' expectations of $1.17 per share. The company's operating revenue rose 11% year over year to $13.7 billion, beating the consensus estimate of $13.5 billion.
In fiscal year 2023, Delta's operating revenue increased 20% year over year to $54.7 billion, with premium and non-ticket revenue accounting for 55% of total revenue. Additionally, Delta reinstated its quarterly dividend, generated $2 billion in free cash flow for the year, and paid down $4.1 billion in total debt.
Is DAL a buy or a sell?
Analysts remain bullish on DAL stock, with a consensus rating of Strong Buy based on 12 Buys. DAL stock has gained over 5% over the past year, and DAL's average price target of $55.92 means it has 32.3% upside potential at current levels.
