Consolidated passenger unit revenue for the month of December was flat year over year, which was driven by strong demand trends. The company returned about $450 million to shareholders through dividends and share repurchases in the quarter for a total of more than $3 billion for 2016. Overall, it seems that the company is on the right path, but let us take a look at the chart and see how price is moving.
Since the lows of late 2012, price has increased from roughly $9.50 to the current price of $50.70, which is a huge return. Right now, price is pushing against highs and may begin experiencing resistance. Right now, I would want to see that highs broken with volume. The $36 area is a support level to watch for if price begins to fall. Right now, the chart appears to be moving in a healthy manner and nothing stands out as a red flag.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Delta Air income statement, its balance sheet, and the statement of cash flows. Potential Delta Air investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Delta Air investors may use each financial statement separately, they are all related. The changes in Delta Air's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Delta Air's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Delta Air
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Delta Air performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Delta Air shares is the value that is considered the true value of the share. If
the intrinsic value of Delta is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Delta Air. Please read more on our
fundamental analysis page.
How effective is Delta Air in utilizing its assets?
Delta Air Lines reports assets on its Balance Sheet. It represents the amount of Delta resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Delta Air aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Passenger Airlines space. To get a better handle on how balance sheet or income statements item affect Delta volatility, please check the breakdown of all its
fundamentals.
Are Delta Air Earnings Expected to grow?
The
future earnings power of Delta Air involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Delta Air factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Delta Air
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Delta
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Delta Air earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Delta Air dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Delta one year expected dividend income is about USD0.1 per share.
Dividends Paid is expected to rise to about (121.6
M) this year. The value of
Dividend Yield is estimated to slide to 0.
Investing in stocks that pay
dividends, such as stock of Delta Air Lines, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Delta Air must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Delta Air. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Delta Air Gross Profit
Delta Air Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Delta Air previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Delta Air Gross Profit growth over the last 10 years. Please check Delta Air's
gross profit and other
fundamental indicators for more details.
Breaking down Delta Air Indicators
Risks
Being in the airline industry has a unique set of risks, but here are a few to keep in mind before investing. For a full list of risks, take a look at the recent 10-K filing, which will have a full list with explanations. Brand image is important because many people may fly only a few times a year, and if they find an airline they enjoy, odds are they’re going to continue using that airline. Also, they have to ensure the planes are safe and stable because if one thing goes wrong, people may lose confidence in the company and switch brands. Lastly, having customer service that is above their competitors will certainly allow them to stand out among the crowd, through the good and bad times.
Conclusion
The stock has performed and is at current highs, but the bulk of the returns may have happened already. A common theme through equities is the major moves have already happened, but it is certainly not too late. Be sure to do your homework and even consult a professional to understand what is the best fit for your portfolio. This is a solid company and shouldn’t be ignored.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Delta Air Lines. Please refer to our
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