Delta Airlines (DAL) - Get Report shares traded notably lower Wednesday after the carrier published its provisional third quarter earnings forecast that indicated modestly softer-than-expected adjusted revenues.
Delta said it sees adjusted revenue growth of around 6.5% for the three months ending in September, a figure that implies a third quarter tally of $12.61 billion, just shy of the Refinitiv forecast of $12.67 billion. Earnings per share, however, are expected to come in between $2.20 and $2.30 per share, a modest boost at the lower end of the range from the group's projections earlier this summer.
Delta shares were down 6.05% to $53.56, a move that would trim the stock's year-to-date gain to 7.3%. A large portion of the move, however, could be linked to the sharp decline for the S&P 500, which sank Tuesday and Wednesday following a weaker-than-expected reading for U.S. factory activity.
Overall system capacity rose around 4% from last year, the company said, while the adjusted growth for TRASM, a key industry metric that measures revenues for available seat miles, was pegged at 2.5%.
Delta's second quarter earnings topped Wall Street forecasts earlier this years as as non-ticket and premium product revenues boosted topline growth.
Delta said adjusted earnings for the three months ending in June came in at $2.35 per share, up 32% from the same period last year as revenues rose 6% to a record $12.54 billion thanks to surges in premium product and non-ticket revenues.
Looking into the 2019 fiscal year, Delta said it will boost its earnings guidance to a range of $6.75 to $7.25 per share and a full-year pre-tax profit margin improvement of between 14.5% and 16.5%.