3. Delta Air Lines (DAL) is a U.S.-based airline engaged in providing passenger and cargo services worldwide.
Delta's revenue during the June quarter grew $1 billion, following a 1% increase in passenger traffic. Passenger revenue, forming about 88% of operating revenue, grew 13%, while cargo was the fastest-growing segment during the quarter, at 25%.
Fuel costs were a major dampener during the quarter, increasing 39% year-over-year to a billion dollars. While the company's liquidity position is strong, it holds $3.8 million in cash and short-term investments, and $1.8 billion in undrawn revolving credit facilities. Operating cash flow during the June quarter was $1 billion.Hank Halter, Delta's chief financial officer, said, "With strong cash generation despite fuel price pressures, we are making solid progress on our debt reduction goals." He added, "In 18 months, we have reduced our net debt by over $3 billion, while still making significant investments in our product, fleet and facilities." Analysts' consensus estimate pegs average gains at 68% over the next year with buy ratings of 79%. The stock is trading at 7.7 times its estimated 2011 earnings.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV