Delta Air Lines' (DAL) Q4 revenue outlook will be the key focus when it reports Q3 results this week, with the market expecting a sizeable cut to implied Q4 earnings outlook, UBS said in a note Tuesday.
The brokerage said investors expect Q4 revenue growth in the high-teens range, while a stronger outlook could be well received.
UBS also expects Q4 earnings per share guidance to be below the previously implied level, largely due to higher fuel assumptions.
For Q3, UBS said there is a wide range of expectations for earnings per share from $1.70 to $1.90 but it expects $1.70 compared with consensus of $1.94, driven mostly by variability in fuel assumptions.
UBS maintained the company's buy rating with a $105 price target.
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