Delta Air Lines' Strong Q4 Performance Highlights

• Delta Air Lines (NYSE:DAL) reported earnings per share of $1.85, beating estimates and showcasing strong financial health.
• The company's revenue of approximately $15.56 billion exceeded expectations, driven by a significant increase in cargo revenues.
• Delta's financial metrics, including a P/E ratio of 11.52 and a debt-to-equity ratio of 1.11, reflect its market valuation and financial stability.

Delta Air Lines (NYSE:DAL) is a major American airline, known for its extensive domestic and international flight network. It competes with other major airlines like American Airlines and United Airlines. On January 10, 2025, Delta reported earnings per share of $1.85, surpassing the estimated $1.74, and actual revenue of approximately $15.56 billion, exceeding the estimated $14.19 billion.

During the Q4 2024 earnings conference call, led by CEO Ed Bastian and other key executives, Delta's financial performance was discussed in detail. The call, attended by analysts from Goldman Sachs, Barclays, and JPMorgan, highlighted Delta's strong earnings amid a 3% rise in crude oil prices. Despite this, U.S. stocks, including the Nasdaq Composite, experienced a downturn.

Delta's impressive financial performance in Q4 2024 was partly driven by a 32% year-over-year increase in cargo revenues. This growth contributed to the company's earnings surpassing estimates, showcasing Delta's ability to capitalize on its cargo operations. The strong performance provides a positive outlook for the company moving forward.

Delta's financial metrics offer insights into its market valuation and financial health. With a price-to-earnings (P/E) ratio of approximately 11.52, investors are willing to pay $11.52 for each dollar of earnings. The price-to-sales ratio of about 0.68 indicates that investors pay 68 cents for every dollar of sales, while the enterprise value to sales ratio of 0.91 reflects the company's valuation relative to its revenue.

The company's enterprise value to operating cash flow ratio is approximately 6.97, indicating its cash flow generation relative to its valuation. An earnings yield of about 8.68% provides a perspective on the return on investment. Delta's debt-to-equity ratio of approximately 1.11 shows the proportion of debt used to finance its assets, and a current ratio of around 0.37 highlights its ability to cover short-term liabilities with short-term assets.