Delta Air Line's reports earnings before the open on Wednesday, July 13
Delta Air Lines, Inc (NYSE:DAL) will help kick off a highly anticipated earnings season this week, with Wall Street hoping to get hints on the state of the economy as we head into the latter part of a historically bearish year. The travel name will report second-quarter results before the open on Wednesday, July 13, with the brokerage bunch already predicting earnings of $1.66 per share on $13.24 billion in revenue.
DAL has seen mostly negative returns the day after its quarterly report, with five of its last eight next-day sessions swinging downward; however, Delta Airlines stock managed gains of 6.2% and 2.1% in April and January, respectively. The equity averaged a move of 3.3%, regardless of direction, in the last two years, with the options pits pricing in a bigger swing of 9% this time around.
At last glance, DAL is down 1.6% to trade at $29.26. The security has struggled to close above the $30 level so far this month, while its 20-day moving average has been putting pressure on the shares since early June. Year-to-date, Delta Air Lines stock sits 25.1% lower.
Options traders have been optimistic towards the airline name. At the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 10-day call/put ratio of 4.84 sits higher than 83% of readings from the past year. This means that calls are getting picked up at a much quicker-than-usual clip.