Diamonds and Dogs
Delta Air Lines (DAL) a bright spot in a down market. The Atlanta based airliner is up 4% after topping third-quarter profit expectations, offsetting higher fuel charges. Revenue rose 8% to $11.95 billion. Delta's solid 8% revenue growth, combined with flat non-fuel unit cost performance, helped offset 85% of the $655 million fuel cost increase in the quarter. The improved cost trajectory gives Delta confidence that they are on a path to deliver continued top-line growth and expand margins into 2019.
A bad day to report disappointing guidance. The engineering, construction and maintenance company, Fluor (FLR) dropped 17% after warnings of a third-quarter revenue shortfall. The company is taking a number of charges for some close out efforts on projects in Europe and a gas-fired power project in Florida. One analyst mentioned this is the eighth miss out of the last nine quarters despite strong new awards last quarter, this quarter, and likely next quarter as well.