Delta Air Lines stock has shown strong growth in profits, with potential for further increase.
From Nasdaq: 2024-06-18 21:54:38
Delta (NYSE: DAL) saw its net income increase to $4.6 billion in 2023, driven by higher revenues, lower costs, and a gain on securities sale. The stock has appreciated 20% this year, showing strong gains over the past few years. However, beating the S&P 500 consistently has been challenging for individual stocks.
Despite uncertain macroeconomic conditions, DAL stock has room for growth, with a valuation estimated at $55 per share for 2024. Delta’s revenue in 2023 was $58 billion, with operating income up by 33.5%. The company expects its earnings to be between $6.00 and $7.00 per share for the full year.
Delta’s net income surged from $1.3 billion in 2022 to $4.6 billion in 2023, driven by higher operating income and lower interest expenses. Adjusted net income also doubled to $4 billion, with an expected EPS of $6 to $7 for 2024. The company anticipates continued expansion of its margin profile in the future.
Despite a 20% rise in the stock this year, Delta may still have more room for growth. The company’s average fuel prices have been stable, contributing to a positive outlook for future earnings. Comparisons with peers and industry metrics can offer further insights into Delta’s performance and potential opportunities for investors.
Read more at Nasdaq: Will Delta Air Lines Stock See Higher Levels After A 3.5x Growth In Profits?