Deutsche Lufthansa (OTCMKTS:DLAKY) Shares Gap Down on Disappointing Earnings

Key Points

• Deutsche Lufthansa shares fell sharply, opening at $9.51 versus a prior close of $10.71 after the airline reported disappointing quarterly results.
• The company reported quarterly EPS of $0.13, missing the $0.34 analyst consensus by $0.21. Its net margin was 3.83% and return on equity was 13.46%.
• Analyst sentiment is broadly negative: Citigroup, Barclays and Morgan Stanley downgraded the stock, while MarketBeat lists a consensus rating of “Reduce” with four Sell, two Hold and one Strong Buy ratings.

Deutsche Lufthansa AG (OTCMKTS:DLAKY - Get Free Report) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $10.71, but opened at $9.51. Deutsche Lufthansa shares last traded at $9.61, with a volume of 9,644 shares.

The transportation company reported $0.13 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.34 by ($0.21). Deutsche Lufthansa had a net margin of 3.83% and a return on equity of 13.46%.

Wall Street Analyst Weigh In

DLAKY has been the topic of several research analyst reports. Citigroup downgraded shares of Deutsche Lufthansa from a "hold" rating to a "strong sell" rating in a research report on Wednesday, July 8th. Barclays downgraded Deutsche Lufthansa from an "equal weight" rating to an "underweight" rating in a research report on Friday, May 8th. Morgan Stanley cut Deutsche Lufthansa from an "equal weight" rating to an "underweight" rating in a research report on Tuesday, May 26th. Finally, Zacks Research raised Deutsche Lufthansa from a "strong sell" rating to a "hold" rating in a report on Monday, June 15th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Reduce".

Institutional Trading of Deutsche Lufthansa

Hedge funds and other institutional investors have recently bought and sold shares of the stock. GAMMA Investing LLC lifted its holdings in Deutsche Lufthansa by 52.1% in the second quarter. GAMMA Investing LLC now owns 13,943 shares of the transportation company's stock valued at $159,000 after acquiring an additional 4,779 shares during the period. Fulton Bank N.A. acquired a new position in shares of Deutsche Lufthansa in the 2nd quarter valued at $120,000. Finally, Sterling Capital Management LLC purchased a new stake in Deutsche Lufthansa during the first quarter worth $204,000.

Deutsche Lufthansa Trading Down 9.7%

The company has a market cap of $11.62 billion, a price-to-earnings ratio of 6.45, a price-to-earnings-growth ratio of 0.64 and a beta of 0.96. The company has a quick ratio of 0.73, a current ratio of 0.81 and a debt-to-equity ratio of 0.94. The company's 50-day moving average is $10.32 and its 200 day moving average is $9.84.

Deutsche Lufthansa Company Profile

Deutsche Lufthansa AG is a leading global aviation company headquartered in Cologne, Germany, and is recognized as one of the world's largest airline groups. Founded in its modern form in 1953, the company traces its heritage back to the original Deutsche Luft Hansa established in 1926. Lufthansa operates passenger and cargo services under its flagship brand, as well as through numerous subsidiaries including Swiss International Air Lines, Austrian Airlines, Brussels Airlines and the low-cost carrier Eurowings.

The group's passenger network spans Europe, the Americas, Asia, Africa and the Middle East, with primary hubs at Frankfurt Airport and Munich Airport.

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