What's Going On With Delta Air Lines Stock?
Portfolio Pulse from Nabaparna Bhattacharya
Delta Air Lines, Inc. (NYSE:DAL) shares dropped after the company provided an update on its financial outlook, expecting to hit the top half of its initial revenue growth guidance for the March quarter. Despite this, Delta reiterated its FY24 earnings forecast and provided details on its adjusted debt to EBITDA ratio. Meanwhile, Southwest Airlines Co (NYSE:LUV) also adjusted its first-quarter guidance due to operational challenges, impacting its stock.
March 12, 2024 | 4:25 pm
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Delta Air Lines shares fell after announcing expectations to meet the upper half of its revenue growth guidance for the March quarter, alongside reiterating its FY24 earnings forecast.
Delta's stock price decline can be attributed to the market's reaction to the company's financial outlook update. Despite expecting to meet the upper half of its revenue guidance, the reiteration of its FY24 earnings forecast without significant positive adjustments may have led to investor disappointment, contributing to the stock's decline.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90
NEGATIVE IMPACT
Southwest Airlines adjusted its first-quarter guidance due to higher completion factors and reduced Boeing aircraft deliveries, impacting its stock negatively.
Southwest Airlines' stock price is likely to be negatively impacted in the short term due to the revised first-quarter guidance. The operational challenges, including higher completion factors and reduced Boeing aircraft deliveries, signal potential operational inefficiencies and increased costs, which could dampen investor sentiment.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80