• Delta Air Lines, Inc. (NYSE:DAL) is poised to announce its quarterly earnings with expectations set for an EPS of $1.74 and projected revenue of $14.1 billion.
• High costs present hurdles, but the company anticipates revenue growth between 2% to 4%.
• Investors should pay attention to the holiday season’s impact on Delta’s performance and any developments related to the lawsuit against CrowdStrike.

Delta Air Lines, Inc. (NYSE:DAL), a leading American airline, provides air travel services globally. Competing against heavyweights like American Airlines and United Airlines, Delta is gearing up for its quarterly earnings announcement on January 10, 2025. Analysts project earnings per share (EPS) at $1.74 and revenue around $14.1 billion.

Despite challenges for its fourth quarter stemming from increased costs, revenue is expected to grow between 2% to 4%, with EPS estimates ranging from $1.60 to $1.85. This mixed outlook suggests a cautious stance ahead of the earnings report, as noted by Seeking Alpha.

Investors are encouraged to closely observe how the holiday season affects Delta’s performance, as demand typically influences travel trends sharply during this period. They should also monitor any updates concerning the ongoing lawsuit against CrowdStrike, which may influence projections for the company.

Delta’s financial metrics provide a glimpse into its market valuation: the P/E ratio stands at approximately 8.13, indicating the market’s earnings valuation. Its price-to-sales ratio is about 0.65, suggesting a relatively low valuation against its revenue. The enterprise value to sales ratio is around 0.99, demonstrating the company’s total valuation regarding sales.

The enterprise value to operating cash flow ratio hovers around 8.97, hinting at Delta’s cash flow generation relative to its market valuation. The earnings yield is about 12.29%, showing a return on investment for shareholders. Delta’s debt-to-equity ratio stands at approximately 1.30, reflecting its reliance on debt financing versus its equity. Lastly, the current ratio is about 0.39, indicating the company’s capacity to cover its short-term liabilities with short-term assets.