Shares of Delta Air Lines Inc. (DAL) jumped 2% to $60.66 in premarket trading on Thursday after surpassing consensus estimates on non-GAAP earnings for the second quarter of 2019 by 10 cents, posting $2.35 per diluted share. The result was 32% growth from the same quarter a year ago.
GAAP earnings per share also increased 48.3% to $2.21.
In line with expectations, revenue came in at a record of $12.5 billion and was 8.7% higher year over year.
Revenue growth was driven by improvements reported throughout Delta Air Lines’ entire business, including a 10% rise in ticket-business cabin and premium products, 10% increase in loyalty travel awards and 16% growth in travel-related services. Lower volumes impinged on cargo revenue, which fell 17%.
Additionally, the Atlanta-based airlines company reported 3.8% increase in adjusted total revenue per available seat mile and 1.4% increase in adjusted non-fuel cost per available seat mile.
For the third quarter of 2019, Delta Air Lines projected earnings per share of $2.10 to $2.40 compared to consensus estimates of $2.13 per share and forecasted unit revenue growth of 1.5% to 3.5%.
For full 2019, the company increased its non-GAAP earnings per share guidance to between $6.75 and $7.25, versus expectations of $6.9.
Delta Air Lines shares traded around $59.5 for a market capitalization of $38.93 billion at close Wednesday. The share price increased 17% for the past 52 weeks through July 10 to far above the 200-, 100- and 50-day simple moving average lines. The 52-week range was $45.08 to $61.32.
The stock outperformed the S&P 500 index by about 11.4% over the past year.
The 14-day Relative Strength Indicator of 69 indicates the stock is neither overbought nor oversold.
Wall Street issued an overweight recommendation rating for shares of Delta Air Lines with an average target price of $67.55.
Disclosure: I have no positions in any securities mentioned.
Read more here:Ă‚
4 Large-Cap Stocks Announce Quarterly DividendsÂ
Levi Strauss & Co. Shares Plummet on Earnings MissÂ
Consider Premier Gold Mines for Next Price RallyÂ
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
