{"id":268,"date":"2015-01-21T04:34:16","date_gmt":"2015-01-21T10:34:16","guid":{"rendered":"http:\/\/news.medill.northwestern.edu\/justus\/?p=268"},"modified":"2015-01-22T08:41:52","modified_gmt":"2015-01-22T14:41:52","slug":"deltas-stock-surged-after-4th-quarter-earnings-released","status":"publish","type":"post","link":"https:\/\/news.medill.northwestern.edu\/chicago\/deltas-stock-surged-after-4th-quarter-earnings-released\/","title":{"rendered":"Delta\u2019s stock surged after 4th Quarter earnings released"},"content":{"rendered":"

Delta Air Lines Inc.\u2018s stock shot up 7.26 percent after the release of its fourth-quarter report <\/a>on Tuesday morning, despite its net income\u2019s swinging down to a loss of $712 million dollars in the December quarter, or 86 cents loss per diluted share,\u00a0from\u00a0the year-ago earnings of $9.89 per diluted share.<\/p>\n

The adjusted non-GAAP net income, however, was $649 million, or 78 cents per diluted share, beating the consensus forecast of 75 cents, according to Zacks Investment Research.<\/p>\n

<\/p>\n

The \u201cmark-to-market adjustments for fuel hedges\u201d accounted for $1.2 billion of the $1.4 billion worth of \u201cspecial items\u201d that Delta excluded in the non-GAAP data.<\/p>\n

Delta\u2019s net income excluding special items was $649 million for the quarter ended on Dec.31, marking a 16.3 percent increase from the year-earlier period income of $558 million.<\/p>\n

The company\u2019s year-ago fourth quarter earning was largely boosted by a net $7.9 billion worth of \u201cspecial items gain,\u201d including a $8.0 billion non-cash associated with the reversal of Delta\u2019s tax valuation allowance.<\/p>\n

\u201cDelta\u2019s strong operating cash flow, combined with our disciplined capital investments, resulted in $3.7 billion in free cash flow in 2014,\u201d said Paul Jacobson, executive vice president and chief financial officer of Delta, in a press release.<\/p>\n

Jacobson said Delta allocated the free cash flow to reducing net debt levels by $2.1 billion to $7.3 billion, funding excess contributions, and returning $1.35 billion to owners through dividends and share repurchases.<\/p>\n

Delta’s Chief Executive Officer Richard Anderson said in the conference call<\/a> that the company\u2019s top priority would continue to be \u201cpaying down debt.\u201d<\/p>\n

Delta Air Lines Inc. stock, January 20<\/h1>\n
\"Delta's<\/a>
Delta’s stock price rose more than 7 percent after the release of its December quarter earnings. (Bloomberg)<\/figcaption><\/figure>\n

\u201cThe biggest debate in the airline industry right now is how much fuel savings companies can hold on to,\u201d said Stifel Financial Corp. analyst Joseph Denardi.<\/p>\n

\u201cThere\u2019s a tremendous opportunity in front of us from lower fuel prices,\u201d said Anderson during the\u00a0conference call<\/a>. \u201cAt current fuel prices we expect to capture over $2 billion in fuel savings benefit in 2015 net of our hedges,\u201d he added.<\/p>\n

\u201cWe expect a net year-over-year fuel price benefit of $500 million in the March quarter and will work throughout 2015 to maximize the benefit of fuel savings to our bottom line,\u201d said Paul Jacobson, Delta\u2019s chief financial officer.<\/p>\n

\u201cFrom Delta\u2019s 2015 first-quarter pricing for fares, the outlook for its stock\u00a0is pretty great,\u201d said Denardi, who raised the price target\u00a0for Delta to $65 from $60 after the release of the earnings.<\/p>\n

Delta\u2019s stock closed at $49.17 on Tuesday, up $3.33 from the previous day.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Delta Air Lines Inc.\u2018s stock shot up 7.26 percent after the release of its fourth-quarter report on Tuesday morning, despite its net income\u2019s swinging down to a loss of $712 million dollars in the December quarter, or 86 cents loss per diluted share,\u00a0from\u00a0the year-ago earnings of $9.89 per diluted share. The adjusted non-GAAP net income, […]<\/p>\n","protected":false},"author":53,"featured_media":269,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[211],"class_list":["post-268","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-featured"],"yoast_head":"\nDelta\u2019s stock surged after 4th Quarter earnings released - Medill Reports Chicago<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/news.medill.northwestern.edu\/chicago\/deltas-stock-surged-after-4th-quarter-earnings-released\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Delta\u2019s stock surged after 4th Quarter earnings released - Medill Reports Chicago\" \/>\n<meta property=\"og:description\" content=\"Delta Air Lines Inc.\u2018s stock shot up 7.26 percent after the release of its fourth-quarter report on Tuesday morning, despite its net income\u2019s swinging down to a loss of $712 million dollars in the December quarter, or 86 cents loss per diluted share,\u00a0from\u00a0the year-ago earnings of $9.89 per diluted share. 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