This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Demand Questions Surface in Delta, US Airways Reports

Derchin slightly reduced first-quarter estimates for Delta and US Airways, to 2 cents and 26 cents, respectively, but he has buys on both. He also has the same $19 price target for both. He said sequestration would have impacted Delta's Atlanta hub because of the high concentration of military bases in the Southeast; Charlotte likely felt a similar impact. But it is worth noting, he said, that both carriers will report a first-quarter profit, a rarity for airlines.

Sterne Agee analyst Jeff Kaufman said Delta's failure to meet guidance was unexpected. "The airline that most investors viewed as the one without 'concerns' surprised analysts with a concern,'" Kaufman wrote in a report. But he said sequestration and "a new revenue management strategy that misfired" were both one-time events. Although he reduced his first-quarter estimate to 5 cents from 16 cents, he retained a buy on the shares and a $21 price target.

Wolfe Trahan analyst Hunter Keay said the PRASM disappointment reflects differing strategies, nothing more. "We think US Airways stimulated March traffic with low fares following a poor February, and Delta optimistically held out for higher fares following a good February," he wrote. "The sell-off in stocks this week feels well overdone and more about the stock charts than about fundamentals. What's really changed with the big picture bull thesis, after all?

Investors will have more PRASM information next week from United, which will report traffic after the close on Monday, and American.

-- Written by Ted Reed in Charlotte, N.C.

>To contact the writer of this article, click here: Ted Reed
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LCC $0.00 0.00%
ALK $70.43 0.00%
DAL $41.67 0.00%
SAVE $43.93 0.00%
UAL $45.81 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs