DAL has best earnings upside revisions in industry

[WorldTraveler]

E is absolutely right. Companies usually know their earnings long before they are released but it is all coordinated internally.

There is NO coordination between companies within an industry regarding earnings releases.

A big reason why DL reports early now is because they have integrated all of their finance related systems and get valid finance data very quickly. Right after the DL/NW merger, DL was one of the LAST to report. AA/US is processing tickets thru two res systems. WN was doing it until recently.

Electronic tickets and computerized expense systems make it almost possible to close the books at 23.59 pm on the end of the quarter/year.

DL NOW reports early because DL has been a leader in the industry in terms of financial results and is confident that it can shape industry perception of the industry.

yes, FWAAA, it was a given quite some time ago that DL would report a net loss when MTM adjustments are included.

DL's guidance that they would record $2B in MTM adjustments for the 4th quarter of 2014 says that their hedge losses could well amount to that much.

WN is expected to generate significant hedge losses as well as UA and any other airline that hedged before the 3rd quarter.

Airlines don't hedge to lose money but to be able to manage costs. If airlines could hedge to reduce health care expenses, they would... but that is not possible. the notion that airlines "can afford" hedge losses so should be able to increase their expenses shows a profound lack of understanding of what hedging actually is and does.

the question, again, is how DL has managed to generate financial results as strong as they are likely to report when the hedge losses are not considered.

AA very likely will report the highest net profit in the industry - but as has been noted they will not be paying profit sharing or have hedge losses - both of which nearly every other airline will have.

The reason why analysts are increasing their valuation of DL stock is because DL clearly is generating very strong revenue aside from the hedge losses.

and let's keep in mind that DL still has said that it has a goal of having the lowest fuel costs in the industry for 2015.

 

[jcw]

No one suggested there was coordination between companies - companies almost 99% of the time report on the same schedule every quarter unless there is some material event

Therefore, how many times in the last year did DL not release first?

 

[jcw]

In case you continue to be confused the earnings release facts are

AA reports on the 4th Thursday after quarter end except 4th quarter which then they report on the 4th Tuesday after quarter end

DL is random

UA is the 4th Thursday after quarter end

WN is the 4th Thursday after quarter end

The facts are getting in the way of DL reports early because they have better earnings

The facts say DL is random while the others stick to a schedule

It's fine DL is random however it's not a fact that means they perform better because of the day they announce earnings

 

[Kev3188]

 

DL will be the first airline to report its earnings tomorrow. DL has consistently been the first to report and has set the climate and the bar for earnings in the industry.

Meh.

How 'bout we wait to have a "strategic business discussion" until all the earning reports are actually out?

you know... Its interesting that it is okay for Delta to keep getting its shirt handed to them in the hedge game (billions in the last few years) 
 
but can't afford better health care coverage or less out sourcing. Funny how what works....

Seriously.

 

[WorldTraveler]

No one suggested there was coordination between companies - companies almost 99% of the time report on the same schedule every quarter unless there is some material event

Therefore, how many times in the last year did DL not release first?

again,
DL reports first because post-merger and BK it has led the industry in financial performance and has been able to shape the perception of the investment community regarding the airline industry. and as E notes, DL has structured its board schedule in order to take advantage of that position in the industry.

and DL has the financial reporting tools inside the community to know that information very soon after the quarter ends.
 
 

Meh.

How 'bout we wait to have a "strategic business discussion" until all the earning reports are actually out?


Seriously.

this is as serious as it gets, Kevin.

if you don't recognize that OUR company is running itself exceptionally well and doing so despite one industry challenge after another, then there really is no business discussion to be had with you.

DL is undoubtedly asking some serious questions about its hedge strategy but it is not at all accurate that DL has lost billions over the past year. I don't know the scorecard but you and the very few of your coworkers who someone think that 15% extra compensation per year on top of the largest number of raises over the past 7 years is not enough.

tell you what.... we'll let the three of you have a union and you can ENJOY all of the benefits that come with it. and you can negotiate your own benefits and we'll see how well you fare.

answer quick before the press release comes out.... will the profit sharing payout for DL employees exceed $1 BILLION? will the share each employee receives exceed 15%?


company just reported.

$1.1 billion in profit sharing.

$1.0 billion in net profit before special items

12.6% operating margin

domestic revenue continues to lead DL's performance. RASM growth for DL and likely the rest of the industry is slowing.

the refinery's profitability offset more than 10% of DL's counterparty fuel commitments .

 

[Kev3188]

 

this is as serious as it gets, Kevin.

The earnings reports themselves? Of course.

This thread's topic? Not so much.

if you don't recognize that OUR company is running itself exceptionally well and doing so despite one industry challenge after another, then there really is no business discussion to be had with you.

Of course I recognize how this carrier is performing. I help create that reality every day. So do my coworkers.

You're welcome.

 

[WorldTraveler]

since the thread itself was a very accurate predictor of the actual earnings release, it was absolutely accurate.

you do realize that there are people who make lots of money based on accurately predicting the movement of stocks based on earnings reports?

and the basis of the article was factually correct... here is a confirmation

"Profit was 78 cents a share, Delta said in a statement today. That surpassed the average estimate of 77 cents a share by 18 analysts compiled by Bloomberg."

after a number of absolutely flawless flights and outstanding service, I am very proud of what you and your coworkers do.... many thanks.

 

[LD3]

after a number of absolutely flawless flights and outstanding service, I am very proud of what you and your coworkers do.... in that list of flights, I flew as close to your airport horizontally as the aircraft was above you. looked to me that all of the towbars were in their proper place..... many thanks.

 
But he's still going to rat you out for helping other airlines at no charge.....

 

[700UW]

• On a GAAP basis including special items, Delta's December quarter pre-tax loss was $1.1 billion, operating margin was -8.6 percent and net loss was $712 million, or $0.86 per share.  On a GAAP basis including special items, Delta's 2014 pre-tax income was $1.1 billion, operating margin was 5.5 percent and net income was $659 million.

 

[WorldTraveler]

again, DL is likely to lose just under $1 billion in hedge losses but is paying $1.1 billion to its employees in profit sharing

 

[eolesen]

A $1.1B pre-tax loss for the quarter?... Say it isn't so.

DL's loss for the quarter is larger than their net income for the year.

So much for a paper loss, eh?

 

[jimntx]

But, E, don't you understand?  A GAAP loss is meaningless if the company pays out profit sharing.  Would be interesting to know what percentage of that PS makes its way down to the lowly peons like Kev who actually make the airline run from day to day, and don't spend their days in conference rooms trying to figure out a way to outsource/reduce to part-time/put into RR system more full-time, PS-sharing, benefit-given employees.
 
At AA, we're obviously doing it wrong because we are currently hiring full-time employees.  Surely, that's not the way to do it.
 
Alert!   Anderson made public statement this am that excluding one time charges--aka fuel hedging losses--DL made a profit for 4th quarter, and (wait for it) expects to save $2 billion this year due to lower fuel costs.  Have they eliminated the fuel hedges previously purchased for this year?

 

[eolesen]

Has there been an announcement regarding profit sharing yet?

Clearly, with less than $1B net profit for the full year, there doesn't seem to be a lot of room for that 15% payout we have heard about tirelessly.

 

[WorldTraveler]

But, E, don't you understand?  A GAAP loss is meaningless if the company pays out profit sharing.  Would be interesting to know what percentage of that PS makes its way down to the lowly peons like Kev who actually make the airline run from day to day, and don't spend their days in conference rooms trying to figure out a way to outsource/reduce to part-time/put into RR system more full-time, PS-sharing, benefit-given employees.
 
At AA, we're obviously doing it wrong because we are currently hiring full-time employees.  Surely, that's not the way to do it.
 
Alert!   Anderson made public statement this am that excluding one time charges--aka fuel hedging losses--DL made a profit for 4th quarter, and (wait for it) expects to save $2 billion this year due to lower fuel costs.  Have they eliminated the fuel hedges previously purchased for this year?

 
I thought you were supposed to be in business and understand that DL settled less than a couple hundred million in hedge losses, has put up $900M in cash in the event the current MTM losses become reality.

oh, and DL absolutely hires FT employees.
 

Has there been an announcement regarding profit sharing yet?

Clearly, with less than $1B net profit for the full year, there doesn't seem to be a lot of room for that 15% payout we have heard about tirelessly.

it's right in the press release.

$1.1B in profit sharing.

how can it be that PS is more than net profits?

 

[700UW]

No FA nor ACS employee are hired in as full time.