Delta Air Lines and BlackRock released their latest earnings reports before opening bell this morning. Delta posted adjusted earnings of $1.47 per share on $10.447 billion in revenue, compared to the consensus estimates of $1.42 per share in earnings on $10.479 billion.
BlackRock posted adjusted earnings of $4.78 per share on $2.8 billion in revenue, against Wall Street’s estimates of $4.77 per share on $2.81 billion in revenue, representing a 3% year over year decline. In the year-ago quarter, the firm posted adjusted earnings of $4.96 per share.
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Delta Air Lines sees decline in passenger revenue
Delta’s GAAP earnings rose from $1.83 per share in the year-ago quarter to $2.03 per share this year. Operating revenue declined 2%, with $65 million of the $260 million decline being the result of currency headwinds. Passenger unit revenues fell 4.9%, which includes 1 point of currency headwinds, with a 3.2% increase in passenger capacity. Total passenger revenue declined to $9 billion, while cargo revenue plunged to $165 million.
Delta said due to the currency headwinds caused by the plunge in the value of the British pound and economic uncertainty due to the Brexit vote, it will cut six points from its U.S.- U.K. capacity off its winter schedule. The changes and other actions throughout its network will cut about 1 point off Delta Air Lines’ system capacity in the December quarter. As a result, the airline now intends to increase its system capacity 1% during the period.
For the September quarter, Delta Air Lines expects to see an operating margin of 19% to 21% and a 4% to 6% decline in passenger unit revenue. Shares of Delta declined 0.15% to $39.50 during premarket trading.
BlackRock’s AUM rises
BlackRock said assets under management increased 4% year over tear to $4.9 trillion. Long-term net inflows were $2 billion in the second quarter, while base fees fell 2% from last year on the back of a mix shift toward fixed income and cash and away from equities. GAAP earnings fell to $4.73 per share from last year’s $4.84 per share.
The firm said Equity products saw net outflows of $2.2 billion, while fixed income recorded inflows of $5.5 billion. Multi-asset products recorded $3.1 billion in outflows, while alternative investments saw $1.4 billion in inflows. Retail clients brought long-term outflows of $6.3 billion, while iShares recorded $15.7 billion in inflows. Institutional active clients recorded $6.7 billion in long-term net outflows, while institutional index clients recorded $1.1 billion in outflows.
Shares of BlackRock declined 0.7% to $355 during premarket trading.