Delta Disappoints: Here's Why the Stock Is Still a Buy

The recent report and guidance from Delta Air Lines (NYSE: DAL) were slightly disappointing for more than one reason. However, they must be examined in the context of the stock's valuation and underlying earnings trends. In doing so, it's clear that there's a robust case for buying the stock despite its 22% run-up since the start of August. Here's the lowdown.Starting with the negatives from the recent quarter and guidance, it's clear that Delta's revenue and earnings growth isn't quite going to be as strong as many would have hoped. For example, management started the year forecasting earnings per share (EPS) in the $6-$7 range. However, adjusted non-GAAP EPS was $4.31 in the first nine months and management's guidance for $1.60-$1.85 in the fourth quarter implies full-year EPS of $5.91-$6.16.To be fair, the numbers show a negative impact of $0.45 from the CrowdStrike software update issue, which caused flight delays and cancellations in the summer. Still, even adding that figure back to the midpoint of the implied full-year guidance produces a full-year EPSs figure just shy of the midpoint of the $6-$7 range given at the start of the year.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool