Delta Earnings Review: Fully Valued On Premium Product

Delta Air Lines, Inc. demonstrated resilience in Q2 despite higher fuel costs driven by Middle East tensions, passing most increases to customers. Premium fares and refinery revenue led revenue growth, but earnings dropped $500M as expense gains outpaced price hikes. DAL's balance sheet improved with free cash flow, debt reduction, and a dividend increase, supporting its strong market position. I view DAL stock as fully valued at current levels, raising my buy-in target to $38, well below the current price.

I flew Delta Air Lines, Inc. (DAL) last week. Q2 results also came out. Naturally, I was thinking about my experience. I was also thinking about the Strait of Hormuz. I was thinking about This article was written by Joseph Parrish 3.66K Followers Follow I analyze securities based on value investing, an owner's mindset, and a long-term horizon. I don't write sell articles, as those are considered short theses, and I never recommend shorting.I was initially interested in a career in politics, but after reaching a dead-end in 2019 and seeing the financial drain this posed, I choose a path that would make my money work for me and protect me from more setbacks. This brought me to study value investing, in order to grow wealth with risk management in mind.From 2020 to 2022, I worked in a sales role at a law firm. As the top-grossing salesman, I eventually managed a team and contributed to our sales strategy. I spent much of my free time reading books and annual reports, steadily building my vault of knowledge about public companies. This period has since been useful in helping me assess a company's prospects by its sales strategy. I particularly get excited when the product seems to sell itself.From 2022 to 2023, I worked as an investment advisory rep with Fidelity, primarily with 401K planning. My personal study before that allowed me to pass my Series exams two weeks ahe...