Global airline Delta Air Lines (NYSE: DAL) will be reporting results tomorrow before market hours. Here’s what investors should know.

Delta Air Lines beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $15.68 billion, up 7.7% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EPS estimates but a miss of analysts’ EBITDA estimates. It reported 66.31 billion revenue passenger miles, up 3.5% year on year.

Is Delta Air Lines a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Delta Air Lines’s revenue to grow 2.6% year on year to $14.59 billion, slowing from the 15.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.74 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Delta Air Lines has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Delta Air Lines’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 10%, meeting analysts’ expectations, and Nike reported a revenue decline of 7.7%, topping estimates by 2%. Carnival traded up 2.2% following the results while Nike’s stock price was unchanged.

Read our full analysis of Carnival’s results here and Nike’s results here.

Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the consumer discretionary stocks have shown solid performance, the group has generally underpeformed, with share prices down 5.1% on average over the last month. Delta Air Lines is down 3% during the same time and is heading into earnings with an average analyst price target of $76.93 (compared to the current share price of $61.57).

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