DAL Stock – Holiday Travel Helps Delta to an Earnings Beat

by Christopher Freeburn | January 21, 2014 11:36 am

Delta Airlines[1]On Tuesday, Delta Air Lines (DAL[2]) announced a higher profit during the December quarter[3] and said it anticipated “margin expansion” during the current quarter. DAL stock rallied on the news, moving up more than 2%.

The airline said that it generated fourth-quarter adjusted earnings of $558 million. Adjusted EPS came in at 65 cents a share, topping the 63 cents expected by analysts. Revenue for the quarter was $9.08 billion, up 6% from the same period last year. That also exceeded the $9.04 billion that Wall Street was looking for, Reuters notes.

Delta indicated that passenger revenue jumped 18.5% in Latin America during the fourth-quarter. U.S. passenger revenue climbed 9% during the period, compared to passenger revenue growth of just 1.9% in Europe. Passenger revenue in the Pacific region sank 1.6% during the quarter.

For the first quarter, DAL predicted an operating margin of between 6% and 8%.

DAL stock has gained more than 120% over the past twelve months on rising passenger traffic and falling fuel costs[4]. DAL stock now trades over $31 a share.

  1. [Image]: http://investorplace.com/wp-content/uploads/2011/05/Delta-Airlines2.jpg
  2. DAL: http://studio-5.financialcontent.com/investplace/quote?Symbol=DAL
  3. a higher profit during the December quarter: http://www.reuters.com/article/2014/01/21/us-delta-results-idUSBREA0K0S720140121
  4. on rising passenger traffic and falling fuel costs: http://investorplace.com/2013/12/delta-dal-airline-stock-to-buy-now-lcc/#.Ut6g8Hn0CX0

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