To The Moon

Earnings Calendar (06Oct25)

I am interested in the coming earnings for Delta Airlines and Levi’s.

Let's take a deep dive into Delta Air Lines.

The stock price for Delta Air Lines (DAL) has demonstrated strong performance, achieving a 16.19% increase year-over-year.

However, a divergence exists between technical and fundamental analysis:

• Technical Analysis: Based on technical indicators, the current recommendation is a Sell rating.

• Analyst Sentiment: Conversely, a consensus of analyst ratings points to a Strong Buy recommendation. The average price target is set at $70.31, which suggests a potential upside of 22.79% from the current price.

This disparity highlights a need for investors to reconcile short-term technical signals with longer-term fundamental optimism.

Delta Air Lines (DAL) Investment Profile

Valuation

The current Price-to-Earnings (P/E) ratio for Delta Air Lines stands at 8.3. While this figure appears attractive, suggesting the stock may be undervalued relative to its earnings, it does not, in isolation, confirm a favourable investment. A comprehensive analysis of financial fundamentals is required.

Revenue and Profitability Trends

DAL has demonstrated substantial revenue growth over the last decade, increasing from $40.7 billion in 2015 to $61.6 billion in 2024.

However, the company’s operating profit has shown a decline from its peak of $7.8 billion in 2015 to $5.9 billion in 2024. Post-2020 (COVID-19 impact), operating profit has not exceeded the $6 billion mark, though a gradual improvement has been observed.

Earnings Performance

Earnings Per Share (EPS) has experienced a modest decline over the period, moving from $5.63 in 2015 to $5.33 in 2024. Furthermore, a 25.7% drop in EPS growth was recorded between 2023 and 2024.

Financial Health Metrics

• Debt-to-Assets Ratio: The company maintains a favourable Debt-to-Assets ratio of 0.3, indicating a healthy level of balance sheet leverage.

• Free Cash Flow (FCF) Margin: The 10-year median FCF margin is 3.5%.

Earnings Forecast and Investment Stance for Delta Air Lines (DAL)

The consensus forecast for the upcoming earnings report projects Earnings Per Share (EPS) of $1.53 and revenue of $15.04 billion.

While the stock’s current low Price-to-Earnings (P/E) ratio presents an attractive valuation signal, our investment preference is for Delta Air Lines to demonstrate more robust and consistent growth in both profitability and revenue before initiating a long position. The decision to establish an investment position remains pending stronger fundamental evidence of accelerated earnings and revenue expansion.

@TigerStars

$Delta Air Lines(DAL)$

$Levi Strauss & Co(LEVI)$