Delta Air Lines (DAL) recently stated financial results for the June quarter 2k19 and provided its outlook for the September quarter 2k19. Highlights of the June quarter 2k19 results, including both GAAP and adjusted metrics, are below and incorporated here.
June Quarter Financial Highlights
- Adjusted earnings per share were $2.35, reflecting a 32 percent raise year over year with 8.7 percent top-line growth, 2.3 points of operating margin expansion and $1.8Bof free cash flow.
- Total adjusted revenue, which excludes refinery sales, grew nearly $1Bto $12.5B, a new quarterly record, with 52 percent of adjusted revenue from premium products and non-ticket sources.
- Total unit revenue, adjusted, raised 3.8 percent driven by healthy growth in leisure and corporate revenue and an approximate one point benefit from the amended American Express contract reported earlier this year.
- Non-fuel unit cost (CASM-Ex) raised 1.4 percent contrast to the previous year period, driven by better operations, fleet transformation and efficiency initiatives.
- Generated $5.2Bof operating cash flow and $2.5B of free cash flow on a year-to-date basis, after investing $2.7B into the business, primarily for aircraft purchases and modifications.
- Returned $497Mto shareholders, comprised of $268M of share repurchases and $229M in dividends.
"Our record June quarter financial and operating results demonstrate that we are translating our powerful brand and competitive advantages into earnings growth, margin expansion and solid returns for our owners. Our people are the best in the business and I'm proud to recognize their hard work and dedication this quarter with an additional $518M toward next year's profit sharing," stated Ed Bastian, Delta's chief executive officer. "With our strong first half performance and building momentum from our consumer-focused initiatives, we are increasing our full-year earnings guidance to $6.75 to $7.25 per share."
Cash Flow and Shareholder Returns
Delta generated $3.3B of operating cash flow and $1.8B of free cash flow during the quarter after the investment of $1.4B into the business primarily for aircraft purchases and improvements. Year-to-date, the company has generated $5.2B of operating cash flow and $2.5B of free cash flow.
For the June quarter, Delta returned $497M to shareholders, comprised of $268Mof share repurchases and $229M in dividends. The company also completed repayment of the $1B short-term loan that was used to accelerate the repurchase of shares in the March quarter.
The Board of Directors recently reported a quarterly dividend of $0.4025 per share, an raise of 15% over previous levels. This marks the sixth consecutive raise in Delta's dividend since it was established in 2013. The September quarter dividend will be payable to shareholders of record as of the close of business on July 25, 2k19, to be paid on August 15, 2k19.
Buy or Sell Recommendation?
Analysts mean Recommendation on a stock is noted at 2.00. Analyst Recommendation is an outlook of a stock-market analyst on a stock. Rating Scale: 1.0 represent “Strong Buy” and 2.0 signify “Buy” 3.0 while shows “Hold”. 4.0 display “Sell” and 5.0 reveal “Strong Sell” rating.
In the profitability analysis:
DAL net profit margin of the firm was recorded at 9.20% and operating profit margin was calculated at 12.10% while gross profit margin was measured as 52.60%. Beta factor, which measures the riskiness of the security, was registered at 1.18.
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