Trading Delta Airlines Post Q4 Earnings
Airline stocks tumbled during the coronavirus pandemic and have only now just recovered. While shares in Delta Airlines collapsed more than 70% during this period, the stock is now up 116% from the lows of 2020.
Delta’s most recent fourth-quarterly earnings report beat analyst expectations but also provided some forecasted warnings. Learn how to trade Delta Airlines stock below.
|Symbol for Invest.MT5 Account:||DAL|
|Date of Idea:||17 Jan 2023|
|Time Line:||1 - 6 months|
|Position Size for Invest.MT5 Account:||Max 5%|
- The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.
All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.
Delta Airlines Q4 Earnings Report
Delta Airlines’ fourth-quarter earnings report beat analyst expectations on both profit and revenue. Here’s a rundown on some of the key numbers:
- Earnings per share $1.48 vs $1.33 expected
- Revenue $12.29 billion vs $12.23 billion expected
- Forecasted sales to increase from 14% to 17% in the next quarter
- Full-year 2023 earnings estimate of $5 to $6 per share
- Higher labour costs are forecasted in the first quarter, lowering profit
In the final three months of 2022, Delta Airlines reported $13.44 billion in total sales which is 17% higher than what it bought in during the same quarter three years ago (before the pandemic). Operating costs rose 19%, largely due to a $2.8 billion fuel bill which was 42% higher from 2019.
While the headline numbers of the earnings report are positive, the airline mentioned that there are some risks ahead. This includes a forecasted rise in labour costs that is likely to eat into company profits.
There is also an upcoming pilots union review that is currently reviewing a contract proposal that includes salary raises of 30% over four years. The airline has also started to crack down on crowding at its luxury airport loungers to keep up the increase in revenue from its premium offering.
Delta Airlines Stock Forecast - What do the Analysts Say?
According to analysts polled by TipRanks for a Delta Airlines stock forecast in the past 3 months, there are currently 10 buy, 1 hold and 0 sell ratings on the stock. The highest price level for a Delta Airlines stock forecast is $81.00 with the lowest price target at $39.00.
The average price target for a Delta Airlines stock forecast is $50.82.
An Example Trading Idea for the Delta Airlines Stock Price
An example trading idea for the Delta Airlines share price could be as follows:
- Buy the stock on a break above $40.00 to allow for current market volatility.
- Target the average analyst price target around $50.00.
- Keep your risk small at a maximum of 5% of your total account.
- Time Line = 1 – 6 months
- If you buy 10 Delta Airlines shares:
- If target is reached = $100.00 potential profit ($50.00 - $40.00 *10 shares).
Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering how volatile airline stocks can be.
Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.
With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Delta Airlines stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.
There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall.
How to Buy Delta Airlines Stock in 4 Steps
With Admirals, you can buy shares in companies like Delta Airlines with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks.
- Open an account with Admirals to access the Trader’s Room.
- Click on Trade on one of your live or demo accounts to open the web platform.
- Search for your stock at the bottom of the Market Watch window and drag the symbol onto the chart.
- Use the one-click trading feature, or right-click and open a trading ticket to input your trade size, stop loss and take profit level.
Click on the banner below to trade Delta Airlines stock today. ▼▼▼
Do You See the Delta Airlines Stock Price Moving Differently?
Remember that all analytics and trading ideas are based on the personal view and experience of the author.
If you believe there is a higher chance Delta Airlines's share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.
This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this How to Trade CFDs article.
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