We expect premier passenger carrier,
Delta Airlines Inc.
), to beat expectations when it reports third-quarter 2013
results on Oct 22, before the market opens.
Why a Likely Positive Surprise?
Our proven model shows that DAL is likely to beat earnings
because it has the right combination of two key components.
Positive Zacks ESP:
which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, stands at +2.24%. This
is a meaningful and leading indicator of a likely positive
DAL currently has a Zacks Rank #2. Note that stocks with Zacks
Ranks of #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a
significantly higher chance of beating earnings.
The combination of DAL's Zacks Rank #2 and +2.24% ESP makes us
confident of a positive earnings beat this release.
What is Driving the Better-Than-Expected
We expect an impressive performance from Delta this quarter
owing to better service offering, capacity discipline and
customer-focused initiatives. Introduction of services and
announcement of several new routes connecting various domestic
and international destinations will propel growth. Additionally,
Delta recently got the U.S. Department of Transportation's
approval to tie up with Virgin Atlantic, which will give the
Atlanta-based carrier a strong foothold in the trans-Atlantic
Significant competition in several of its hub airports remain
one of the major challenges for Delta. Additionally, the carrier
competes with foreign operators traveling to international
destinations, as well as between foreign points. The company also
remains vulnerable to weak economic conditions as the major
countries around the world continue to improve gradually from a
Other Stocks to Consider
Other companies you may want to consider on the basis of our
model which shows that these have the right combination of
elements to post an earnings beat this quarter include:
Republic Airways Holdings Inc.
) with earnings ESP of +2.82% and Zacks Rank #1 (Strong Buy).
U.S. Airways Group Inc.
) with earnings ESP of +6.54% and Zacks Rank #2 (Buy).
Álaska Air Group Inc.
) with earnings ESP of +1.91% and Zacks Rank #2 (Buy).
ALASKA AIR GRP (ALK): Free Stock Analysis
DELTA AIR LINES (DAL): Free Stock Analysis
US AIRWAYS GRP (LCC): Free Stock Analysis
REPUBLIC AIRWAY (RJET): Free Stock Analysis
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