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Delta Air Lines Stock Rises after 3Q17 Earnings Release

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Snapshot of 3Q17

Delta Air Lines (DAL) reported its 3Q17 results on October 11, 2017. It managed to beat Wall Street analysts’ estimates for both revenue and profits. Its revenue rose 5.5% YoY (year-over-year) to $11.1 billion, beating analysts’ estimates of $10.9 billion. Its adjusted EPS (earnings per share) rose to $1.57, beating analysts’ estimate of $1.54.

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Stock rose

Due to its upbeat 3Q17 performance, Delta Air Lines (DAL) stock rose 0.70% on the day of the earnings results. It ended the day at $53.10. The stock rose 0.23% more after market hours. Its two legacy peers, United Continental (UAL) and American Airlines (AAL), fell that same day. United Continental and American Airlines have fallen 0.49% and 0.38%, respectively.

Regional carriers, on the other hand, rose that same day. Allegiant Travel (ALGT) rose 3.4%, JetBlue Airways (JBLU) rose 1.5%, and Alaska Air Group (ALK) rose 1.0%. Southwest Airlines rose 0.95% that day, while Spirit Airlines (SAVE) fell 1.0%.

The Consumer Discretionary Select Sector SPDR ETF (XLY) was flat at 0.05% on October 11, 2017. The broader market tracked by the SPDR S&P 500 ETF (SPY) rose 0.16%.

Series overview

In this series, we’ll analyze DAL’s performance for 3Q17. We’ll also see what factors are expected to drive its growth in the fourth quarter and in 2018. Finally, we’ll wrap up the series by looking at DAL’s valuation multiple.

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