Chart of turbulent earnings trading for Delta Air Lines stock in the third quarter
In addition to September's worse than expected Consumer Price Index reading, there are some good third quarter earnings reports. One was from Delta Air Lines, Inc. DAL, Thursday's pre-market day readiness stock.
Down Day, then Up Day before the report: Investors were undecided about Delta's results before the report. On Tuesday, when American Airlines Group Inc AAL announced it was raising its third quarter revenue guidance, Delta actually fell 58 cents or 2% to close at $28.84.
On Wednesday's low across the market, the issue rose 37 cents or 1.3% to close at $29.21.
Q3 Missed, But Earnings Expected Higher: Ahead of Thursday's open, the company reported quarterly earnings of $1.51 per share, which missed the consensus estimate for $1.53 analysts from 1.31% The company reported quarterly revenue of $12.8 billion, which was 0.85% below analysts' consensus estimate of $12.91 billion.
Delta announced that it is on track to achieve its 2024 targets of over $7 in adjusted EPS with $4 billion in free cash flow. The reason is that the airline expects fourth quarter revenue to be up 5% to 9% from 2019 levels.
PreMarket Prep's Take: When covered in the show, which was ahead of CPI data, the issue was in the green over $1 in the zone $30.50. Without knowing how the morning would unfold from the report, the author of this article focused on potential resistance.
The $31 level has been accentuated, as it was earlier in the week, with several highs flanking the level and making it a major resistance point.
Since late September, there have been five daily highs – one just above $31.20 and four just below $31 – a potential sign that institutional sellers are closing in level.
DAL Price Action: A rapid decline in index futures following the CPI report wreaked havoc on the issue and it only opened in slight increase.
As the futures wobbled, the issue rose but found support ahead of the pair's lows on Tuesday ($28.37) and Wednesday ($28.21), n reaching only $28.52, and reversed sharply.
The issue reached the aforementioned major resistance level of $31 during the session and eventually closed up 4.01% at $30.38.
Thursday's issue discussion can be found here:
Photo via Shutterstock.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
In addition to September's worse than expected Consumer Price Index reading, there are some good third quarter earnings reports. One was from Delta Air Lines, Inc. DAL, Thursday's pre-market day readiness stock.
Down Day, then Up Day before the report: Investors were undecided about Delta's results before the report. On Tuesday, when American Airlines Group Inc AAL announced it was raising its third quarter revenue guidance, Delta actually fell 58 cents or 2% to close at $28.84.
On Wednesday's low across the market, the issue rose 37 cents or 1.3% to close at $29.21.
Q3 Missed, But Earnings Expected Higher: Ahead of Thursday's open, the company reported quarterly earnings of $1.51 per share, which missed the consensus estimate for $1.53 analysts from 1.31% The company reported quarterly revenue of $12.8 billion, which was 0.85% below analysts' consensus estimate of $12.91 billion.
Delta announced that it is on track to achieve its 2024 targets of over $7 in adjusted EPS with $4 billion in free cash flow. The reason is that the airline expects fourth quarter revenue to be up 5% to 9% from 2019 levels.
PreMarket Prep's Take: When covered in the show, which was ahead of CPI data, the issue was in the green over $1 in the zone $30.50. Without knowing how the morning would unfold from the report, the author of this article focused on potential resistance.
The $31 level has been accentuated, as it was earlier in the week, with several highs flanking the level and making it a major resistance point.
Since late September, there have been five daily highs – one just above $31.20 and four just below $31 – a potential sign that institutional sellers are closing in level.
DAL Price Action: A rapid decline in index futures following the CPI report wreaked havoc on the issue and it only opened in slight increase.
As the futures wobbled, the issue rose but found support ahead of the pair's lows on Tuesday ($28.37) and Wednesday ($28.21), n reaching only $28.52, and reversed sharply.
The issue reached the aforementioned major resistance level of $31 during the session and eventually closed up 4.01% at $30.38.
Thursday's issue discussion can be found here:
Photo via Shutterstock.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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