On Thursday morning, Delta Air Lines released yet another rock-solid earnings report. The company posted quarterly adjusted earnings per share of $1.20 on revenue of $11.18 billion. Both figures came in slightly ahead of the average analyst estimate, which called for EPS of $1.18 on revenue of $11.12 billion.
Delta projected that it will post solid earnings results in the fourth quarter as well. Between the company's consistent earnings power and its strong free cash flow, Delta is one of the best stocks in the airline industry for long-term investors.
Earnings power still improving
Delta's quarterly adjusted EPS was down from $1.41 in the third quarter of 2013 . However, the company last year was not accruing any tax liabilities, due to offsetting losses from previous years. Starting in 2014, Delta is including tax expense in its accounting statements, although it won't need to make any cash tax payments to the government for many years.
Delta Air Lines YTD Stock Chart, data by YCharts .
Delta shares now trade for less than eight times free cash flow. This is an unusually low valuation for a company on an upward earnings trajectory. As a result, the recent pullback represents a great opportunity to make a long-term investment in Delta Air Lines.
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The article Delta Air Lines Inc. Earnings: The Cash Keeps Coming originally appeared on Fool.com.
Adam Levine-Weinberg has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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