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Omar Venerio
Omar Venerio
Articles (1720) 

Wall Street Gains on Thursday

Delta Air Lines falls on revenue miss

U.S. stocks were in the green on Thursday, with investors more confident about U.S.-China trade negotiations.The Dow Jones Industrial Average gained 0.52% to 26,483, the S&P 500 Index rose 0.61% to 2,937 and the Nasdaq Composite Index advanced 0.57% to 7,948.

Shares of Delta Air Lines Inc. (NYSE:DAL) fell almost 1.5% on Thursay after the company announced third-quarter results. The airline posted earnings of $2.32 per share on $12.55 billion in revenue. It beat earnings estimates by 5 cents, but fell short of revenue expectations by $60 million.

"Our powerful brand and competitive strengths drove another quarter of great results for our people, customers and owners," CEO Ed Bastian said. "Our people bring our brand to life on every flight and I'm pleased to recognize their outstanding efforts with over $1 billion in profit sharing accrued so far this year." 

The company's adjusted operating revenue was $12.6 billion, $771 million higher than in the prior-year quarter.

Further, the company generated $2.2 billion in operating cash flow and $1.4 billion in free cash flow. Delta used the cash to return $468 million to shareholders, which was comprised of $208 million worth of share repurchases and $260 million in dividends.

Looking ahead, the company expects demand to remain healthy, "positioning the company for a strong close to 2019 with expectations for more than 20% earnings growth, over $4 billion in free cash flow and a fifth year of pre-tax earnings over $5 billion." It expects earnings per share between $1.2 and $1.5.

During the quarter ended June 30, Ken Fisher (Trades, Portfolio) established a new position, buying 3,737 shares. The T Rowe Price Equity Income Fund (Trades, Portfolio) reduced its stake by 9.5% to 1,583,300 shares and Robert Olstein (Trades, Portfolio) curbed his holding by 18% to 145,884 shares. John Hussman (Trades, Portfolio) sold out of the stock.

Gainers

Losers

Global markets

The main European stock markets traded in the green. The U.K.'s FTSE 100 rose 0.28%, France's CAC 40 jumped 1.27%, Germany's Dax gained 0.58% and Spain's IBEX 35 advanced 1.25%.

In Asia, Japan's Nikkei 225 gained 0.45%, India’s BSE Sensex slid 0.78%, Hong Kong's Hang Seng rose 0.10% and China's Shanghai Composite swelled 0.78%.

Disclosure: The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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