Delta Raises Q4 Adj. EPS Guidance; Sees Near Doubling Of EPS In 2023 With 15-20% Revenue Growth

Delta Air Lines (DAL) said, amid continued strong demand, the company is raising fourth-quarter adjusted EPS guidance. Delta noted that the company is ahead of financial plan for the first year of its three-year plan, established last December. In 2023, Delta expects to deliver strong topline growth. Also, the company reiterated its 2024 targets.

“Demand for air travel remains robust as we exit the year and Delta’s momentum is building,” said Chief Executive Officer Ed Bastian.

On a non-GAAP basis, the company now expects fourth-quarter adjusted EPS in a range of $1.35 – $1.40, revised from previous guidance of $1.00 – $1.25. Compared to December quarter 2019, total revenue is now expected to increase in a range of 7 – 8%, updated from previous guidance range of 5 – 9%. Analysts polled by Thomson Reuters expect the company to report profit per share of $1.15. Analysts’ estimates typically exclude special items.

For full year 2022, the company expects GAAP EPS to be $2.12 to $2.17. Adjusted EPS guidance is now $3.07 to $3.12, which reflects the increased outlook for the December quarter. Total revenue is estimated in a range of $45.5 – $45.6 billion. Analysts expect the company to report profit per share of $2.89 on revenue of $45.54 billion.

For 2023, Delta projects 15 to 20 percent revenue growth over 2022 and margin expansion supporting a near doubling of EPS to $5 to $6 per share. Also, the company plans to generate more than $2 billion of free cash flow, enabling further debt reduction.

The company reiterated its 2024 targets, including earning over $7 per share and strengthening the balance sheet to return to investment grade metrics.

Shares of Delta Air Lines are up 3% in pre-market trade on Wednesday.

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