Wall Street Breakfast Podcast: Delta Q3 Earnings In Focus

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Delta Air Traces (DAL) Q3 preview: Can decrease gas costs offset the July outage. (00:23) BlackRock (BLK) mentioned to be exploring an acquisition of personal credit score agency HPS. (01:41) OpenAI (MSFT) projections recommend no earnings till 2029: report. (02:26)

That is an abridged transcript of the podcast.

Delta Air Traces (NYSE:DAL) is predicted to report its third quarter earnings throughout market hours right this moment, and traders will look to evaluate the CrowdStrike outage, which hampered the airline’s operations in July.

The consensus EPS Estimate is $1.55 (-23.6% Y/Y) and the consensus Income Estimate is $15.09B (-2.6% Y/Y).

Airways are, nevertheless, anticipated to profit from momentum, with near-term bookings and decrease jet gas costs offering some margin reduction.

The agency adjusted its outlook after the flight disruptions brought on by the CrowdStrike (CRWD) outage, which came about early within the third quarter.

The outage is predicted to price Delta Air Traces (DAL) $0.45 per share to 3rd quarter earnings and improve the airline’s price per out there seat mile for the quarter.

Shares within the firm are up 26% YTD.

During the last 2 years, DAL has overwhelmed EPS estimates 63% of the time and has overwhelmed income estimates 88% of the time.

During the last 3 months, EPS estimates have seen 0 upward revisions and 15 downward. Income estimates have seen 1 upward revision and 5 downward.

BlackRock (NYSE:BLK) is amongst corporations which might be contemplating buying HPS Funding Companions.

This can be a deal that may give the world’s largest asset supervisor a big place within the personal credit score market.

Bloomberg Information reported, citing individuals conversant in the matter, that HPS and BlackRock have held talks, as HPS pursues a potential preliminary public providing.

Bloomberg beforehand reported that an IPO may worth HPS at $10B or extra, and an all-out buy of the corporate would seemingly command a better valuation.

A deal is not imminent, and the talks may finish with out a transaction, a number of the individuals advised Bloomberg.

One other potential acquirer is personal fairness agency CVC Capital Companions, the report mentioned.

Microsoft-backed (NASDAQ:MSFT) OpenAI just isn’t anticipated to earn annual earnings till 2029, in keeping with firm monetary paperwork obtained by The Data.

The paperwork present annual losses may strike as excessive as $14B in 2026, the report mentioned.

The projections confirmed the corporate reaching annual income of $100B in 2029. OpenAI additionally expects to spend about $200B by means of the top of the last decade, minus inventory compensations. Losses between 2023 and 2028 are projected to whole $44B.

The report additionally discovered that Microsoft is entitled to twenty% of OpenAI’s income.

Final week, OpenAI accomplished its newest funding spherical totaling $6.6B, which propelled the corporate to a $157B valuation. Microsoft and Nvidia (NVDA) each participated within the spherical.

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Catalyst watch:

Hewlett Packard Enterprise (HPE) will maintain its AI Day occasion. Administration mentioned the talks will give attention to the corporate’s industry-leading know-how and capabilities which might be powering the corporate’s progress in AI.

Guidewire Software program (GWRE) will maintain its Analyst Day 2024 occasion.

Superior Micro Gadgets (AMD) will maintain its Advancing AI 2024 occasion to showcase the next-generation AMD Intuition accelerators and fifth Gen AMD EPYC server processors. The corporate mentioned it is going to additionally talk about networking and AI PC updates, along with highlighting its AI options ecosystem.

Tesla (TSLA) will maintain its extremely anticipated robotaxi occasion at 10pm ET (7pm PT). The replace may influence different firms with large robotaxi or autonomous car plans reminiscent of Waymo (GOOG), Uber Applied sciences (UBER), Aurora Innovation (AUR), Amazon’s (AMZN) Zoox, Baidu’s (BIDU) Apollo, and GM’s (GM) Cruise.

On right this moment’s financial calendar:

8:30 am, The September Shopper Worth Index report shall be launched. CPI is predicted to rise 0.1% M/M, in keeping with economists’ consensus, cooling from the 0.2% tempo in August. That may sluggish the Y/Y improve to 2.3% from 2.5% within the prior month.