Delta's Stock Jumps After Profit, Revenue Beats Expectations

Delta Air Lines Inc.'s stock surged 3% in premarket trade Wednesday, after the air carrier reported second-quarter profit and sales that beat expectations. Net earnings rose to $1.49 billion, or $1.83 a share, from $801 million, or 94 cents a share, in the same period a year ago. Excluding non-recurring items, earnings per share came in at $1.27, beating the FactSet consensus of $1.21. Revenue increased 1% to $10.71 billion, above the FactSet consensus of $10.65 billion, as flat revenue from its mainline operations and an increase in other revenue offset declines in regional carrier and cargo revenue. For the third quarter, Delta expects unit revenue to decline 4.5% to 6.5% and operating margin of 19% to 21%. The stock has declined 1.2% over the past three months through Tuesday, while the S&P 500 has gained 0.1%.