BENSENVILLE, IL – APRIL 27: The tail of a Delta Air Lines jet is seen over Bensenville, Illinois, … [+]
Delta Airlines Inc. is scheduled to report earnings before Wednesday’s open. The stock hit a record high of $63.44/share in 2019 and is currently trading near $41/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview:
The company is expected to report a loss of ($1.37)/share on $6.32 billion in revenue. Meanwhile, the so-called Whisper number is a loss of ($1.28)/share. The Whisper number is the Street’s unofficial view on earnings.
Charts Courtesy of MarketSmith Incorporated
A Closer Look At The Fundamentals:
The entire airline industry has made a nice come back as people begin traveling again. Delta is a leader in the space and the company continues to navigate an otherwise turbulent environment gracefully. Hopefully, as we get back to “normal” more people will travel again and Covid-19 will become a distant memory. Once business travel returns to “normal” then it will be smooth flying again. Until then, there might still be some rough patches ahead.
A Closer Look At The Technicals:
The stock was trading in the low $60’s before the Covid-19 lockdown and it is currently trading in the low $40’s. It has more than doubled from the Covid-19 low but the stock still has more room to go before it can hit a new record high. Technically, the stock is sitting on the 200 DMA line and the bulls want to see it rally from here.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
