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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Delta and Hawaiian Start the Party on Day One of Airline Earnings

Atlanta (TheStreet) --Delta (DAL) and Hawaiian (HA) shares showed big gains Wednesday, after the carriers led the parade of airline earnings reports.

Four more major carriers will report on Thursday, while Alaska (ALK) will report Friday.

In trading Wednesday, Hawaiian shares led the industry with a 7% gain, rising 94 cents to $14.63. The carrier reported, following the close on Tuesday, that its adjusted first-quarter loss, which excludes fuel costs, was 2 cents share, narrower than consensus estimate of a 12-cent-loss.

Delta shares rose 6%, gaining $2.14 to $37.09, after the carrier reported a record first-quarter profit excluding items of $281 million, beat estimates and guided toward a strong current quarter, with April passenger revenue per available seat mile up 6% and similar numbers expected in May and June.

Imperial Capital analyst Bob McAdoo wrote Wednesday that he was pleased by Hawaiian's move of aircraft "from unprofitable Asia routes to more profitable West Coastroutes," with service to Maui from San Jose and Los Angeles replacing service to Fukuoka, Japan, and Tapei.

McAdoo maintained a $16 price target, based on an earnings multiple of eleven. Cowen & Co. analyst Helane Becker raised her price target to $14 from $13.

"We've seen yields improve as the company has slowed its international growth," Becker wrote. "We believe PRASM will continue to improve on international routes as long as the Japanese yen and Australian dollar remain at current levels."

Meanwhile, Deutsche Bank analyst Mike Linenberg and JPMorgan analyst Jamie Baker both raised estimates for Delta following the carrier's earnings call.

"Given the March quarter beat and Delta's continued cost control/ better-than-expected revenue trends, we are raising our full year 2014 EPS forecast to $2.85 (vs. consensus of $2.65)," Linenberg wrote late Wednesday. He raised his price target to $40 from $37.

Baker raised his estimate to $47 from $40. That is because Delta's guidance toward a current quarter operating margin between 14% and 16%, if it is applied to the remaining three quarters, should boost consensus full-year estimates by 50 cents, he said. 

Since Delta trades at 10 times earnings, "the mere $1.70 intraday increase in Delta's share price on Wednesday strikes us as insufficient," Baker wrote.

Written by Ted Reed in Charlotte, N.C.

To contact this writer, click here.

Follow @tedreednc

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,880.36 -31.75 -0.19%
S&P 500 1,970.07 +0.12 0.01%
NASDAQ 4,462.9020 +20.2040 0.45%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs