
Why Delta Air (DAL) Stock is Down Today
NEW YORK (TheStreet) -- Shares of Delta Air Lines (DAL) - Get Report are falling 3.55% to $35.47 early Tuesday afternoon after the air carrier cut its operating margin forecast for the 2016 June quarter.
"Due to the company's decision to early settle its remaining 2016 fuel hedges, which impacted fuel expense by about $450 million and operating margins by 4 points, Delta now expects a June quarter operating margin of approximately 17%," the company said in a statement.
The Atlanta-based airline also said consolidated passenger unit revenue (PRASM) for the month of June fell 5% year-over-year, partially due to continued pressure from foreign exchange.
Delta does not expect to report additional losses from its hedge positions this year.
The company also expects average fuel prices per gallon to be between $1.95 and $2 for the period. June quarter non-operating expenses are projected to be between $140 million and $150 million.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity.
The team believes its strengths outweigh the fact that the company shows weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: DAL










