Tag Archives: DAL

QUICK BLURBS [DAL, GBX, MSM/FAST]

(2,130 words) [MSM: 4/6/17; FAST: 4/12/17] Recall that 70% of MSM’s sales come from manufacturing customers (esp. metalworking), who have seen their average daily sales decline by msd/hsd for each of the last 5 quarters prior to 4q16.  Last quarter, the company saw the beginnings of a recovery…. Management is reluctant to say that the […]
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[DAL, UAL] SO YOU’RE SAYING THERE’S A CHANCE?

(1,186 words) Call me a sucker, but I’m tentatively a believer.  With both stocks priced at under 10x trailing earnings (and 11x forward earnings assuming 1%-2% guided margin compression in 2017 at DAL), the market is skeptical about margin sustainability.  Given the industry’s ignominious legacy of undisciplined competition, where the dumbest competitor has historically set […]
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QUICK BLURBS [AA, AAL, DAL, LUV, UAL]

(2,072 words) 10/18/2016: UAL (Earnings Call) Unit revenue -5.8% y/y during the quarter, slightly better than expected on better close-in bookings and yield, w/ 4q PRASM forecast of -4% to -6%. 2nd-order pricing improvement in all regions except the Atlantic.  Domestically, positive close-in corporate booking + supply/demand balance leading to more rational pricing.  [DAL surmised […]
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QUICK BLURBS [DAL, LUV]

(836 words) 7/21/2016: LUV (Earnings Call) Still expecting annual capacity growth in 2017 and 2018, despite crappy fare environment and in contrast to peers, who are reducing capacity [this seemed to be a point of consternation for analysts on the call…one analyst hyperbolically called it an “industry crisis”].  They’re adding about 2% to capacity this […]
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