Delta Air Lines (DAL) is down over 3% as the airline released June traffic and Q2 numbers. The headline negative read was a huge decrease in operating margins, but once digging into the numbers, Delta faced a 400 basis point hit from early settlements of hedging contracts. In essence, the stock trades at 5.5x 2017 EPS estimates, yet the airline forecasts an astonishing 21% operating margin. Delta is in such a bad financial position that the company returned $1.1 billion to shareholders during the quarter while the stock is only worth $27.5 billion, or the equivalent of a 16% annualized yield. These aren't the numbers of a stock to dump at the lows. Disclosure: No position