Delta’s guidance comes up short as rising fuel costs weigh
Delta Air Lines beat on both the top and bottom lines.
The airline’s earnings guidance missed Wall Street estimates as rising fuel costs weighed.
Delta hiked its dividend 15%.
Watch Delta Air Lines trade in real time here.
Delta Air Lines reported better-than-expected second-quarter results Wednesday morning, but guided earnings below Wall Street estimates because of rising fuel costs. Shares were up about 1% in early trading on Thursday.
The US’s number two carrier earned an adjusted $1.77 a share on record revenue of $11.8 billion. Those numbers were ahead of the respective $1.72 and $11.7 billion that Wall analysts surveyed by Bloomberg were expecting. Delta says its pre-tax income of $1.6 billion was hampered by a $600 million impact from higher fuel prices.
“With an expected $2 billion higher fuel bill for 2018, we are now forecasting our full-year earnings to be $5.35 to $5.70 per share, CEO Ed Bastian said in the earnings report. That forecast is below the $5.74 a share expected by the Bloomberg consensus.
Delta’s third-quarter earnings forecast of $1.65 to $1.85 a share missed the $1.83 that was anticipated.
The airline announced it is hiking its dividend 15% to $0.35 a share.
Shares of Delta were down 11% this year through Wednesday.
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Source:: Business Insider