EARLY MOVERS: Delta Air Lines flies low, GameStop surges on buyout chatter

Also in the frame in New York pre-market deals is Gamestop Corp and RPM International Inc

Delta Airlines shares are under pressure after cloudy guidance

Delta Air Lines Inc (NYSE:DAL) saw its shares fly nearly 9% lower Thursday as investors reacted to a profit warning from the carrier for the final three months of 2018.

Unit revenues for the period are likely to have risen by 3%, the carrier said Thursday. Previously, the leading US carrier had forecast 3.5%.

The report sent the sector down, too. American Airlines Group Inc (NASDAQ:AAL) shed 7.5% to $30.06 at the closing bell.

It comes despite Delta saying its fourth-quarter profit, expected to be announced on January 10, will be between $1.25 and $1.30 a share - at the very high end of a previous forecast in October.

The shares have leveled off in pre-market trade, with Delta shares up 1.4% to $46.26 and American Airlines shares 1% higher to $30.36

Gamestop Corp (NYSE:GME) shares are up 11.8% to $14.50 in pre-market having gained 10.25% yesterday. It comes after a report in the  Wall Street Journal yesterday suggesting the company may be the subject of a buyout.

Sycamore Partners and Apollo Global Management are bidding for the firm and a deal could be announced by mid-February, according to a person familiar with the matter, reports WSJ.

Sales at Gamestop have been static at around $9 billion for the last few years as more consumers buy games digitally, and shares have sunk 29% over the last year.

RPM International Inc (NYSE:RPM) saw shares slide over 8% to $50.45 on Friday before the New York bell as the coating and sealants maker's second-quarter earnings and revenue missed expectations.

Earnings per share came in at  $0.52, which missed the consensus estimate of $0.66 per share. That compares to earnings of $0.70 per share a year ago.

Lamb Weston Holdings Inc shares (NYSE:LW) gained 4% on the day to $75.88 after the group's profit and sales beat expectations for the second quarter.
The frozen-foods company posted earnings of $0.74, up from $0.52. Analysts were expecting $0.70 per share. Net sales rose 11% to $911.4 million on expectations of $897.1 million.

Contact Giles at [email protected]

Follow him on Twitter at @Gile74

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