Equities research analysts predict that Southwest Airlines Company (NYSE:LUV) will announce earnings of $1.20 per share for the current fiscal quarter, according to Zacks. Four analysts have issued estimates for Southwest Airlines’ earnings, with the highest EPS estimate coming in at $1.23 and the lowest estimate coming in at $1.17. Southwest Airlines posted earnings per share of $1.19 during the same quarter last year, which would indicate a positive year over year growth rate of 0.8%. The business is expected to report its next quarterly earnings report before the market opens on Thursday, July 27th.
According to Zacks, analysts expect that Southwest Airlines will report full year earnings of $3.90 per share for the current fiscal year, with EPS estimates ranging from $3.70 to $4.11. For the next financial year, analysts expect that the company will report earnings of $4.80 per share, with EPS estimates ranging from $4.00 to $5.65. Zacks Investment Research’s EPS calculations are an average based on a survey of research firms that that provide coverage for Southwest Airlines.
Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Thursday, April 27th. The airline reported $0.61 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.62 by $0.01. Southwest Airlines had a return on equity of 26.75% and a net margin of 10.16%. The firm had revenue of $4.88 billion during the quarter, compared to the consensus estimate of $4.91 billion. During the same period last year, the company earned $0.88 EPS. The firm’s revenue for the quarter was up 1.2% compared to the same quarter last year.
Several brokerages recently issued reports on LUV. Wolfe Research downgraded shares of Southwest Airlines from an “outperform” rating to a “market perform” rating and set a $63.00 price objective on the stock. in a research note on Monday, July 10th. They noted that the move was a valuation call. Morgan Stanley reissued an “overweight” rating and set a $66.00 price objective (up previously from $65.00) on shares of Southwest Airlines in a research note on Monday, July 10th. BidaskClub downgraded shares of Southwest Airlines from a “strong-buy” rating to a “buy” rating in a research note on Wednesday, July 12th. Zacks Investment Research raised shares of Southwest Airlines from a “hold” rating to a “buy” rating and set a $70.00 price target on the stock in a research note on Tuesday, July 4th. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating and set a $70.00 price target on shares of Southwest Airlines in a research note on Thursday, July 13th. Six investment analysts have rated the stock with a hold rating and fourteen have given a buy rating to the stock. Southwest Airlines has a consensus rating of “Buy” and an average target price of $63.80.
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Shares of Southwest Airlines (LUV) traded down 0.78% on Friday, reaching $59.81. The company had a trading volume of 3,354,626 shares. The company’s 50 day moving average price is $61.20 and its 200-day moving average price is $56.77. The stock has a market capitalization of $36.16 billion, a P/E ratio of 17.94 and a beta of 1.29. Southwest Airlines has a 1-year low of $35.42 and a 1-year high of $64.39.
Southwest Airlines declared that its Board of Directors has approved a share buyback plan on Wednesday, May 17th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the airline to reacquire up to 5.8% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s management believes its stock is undervalued.
The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 28th. Stockholders of record on Wednesday, June 7th were paid a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a dividend yield of 0.84%. The ex-dividend date of this dividend was Monday, June 5th. This is an increase from Southwest Airlines’s previous quarterly dividend of $0.10. Southwest Airlines’s dividend payout ratio (DPR) is currently 15.11%.
In related news, EVP Jeff Lamb sold 19,800 shares of the firm’s stock in a transaction on Thursday, May 25th. The shares were sold at an average price of $61.00, for a total transaction of $1,207,800.00. Following the completion of the sale, the executive vice president now directly owns 92,468 shares of the company’s stock, valued at approximately $5,640,548. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Chairman Gary C. Kelly sold 51,000 shares of the firm’s stock in a transaction on Wednesday, May 17th. The shares were sold at an average price of $57.06, for a total transaction of $2,910,060.00. Following the sale, the chairman now directly owns 556,808 shares of the company’s stock, valued at $31,771,464.48. The disclosure for this sale can be found here. In the last three months, insiders sold 118,740 shares of company stock worth $6,923,568. Insiders own 0.18% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in LUV. Guardian Life Insurance Co. of America raised its stake in Southwest Airlines by 0.6% in the first quarter. Guardian Life Insurance Co. of America now owns 2,374 shares of the airline’s stock worth $128,000 after buying an additional 15 shares during the last quarter. Quadrant Capital Group LLC raised its stake in Southwest Airlines by 0.5% in the first quarter. Quadrant Capital Group LLC now owns 3,488 shares of the airline’s stock worth $184,000 after buying an additional 16 shares during the last quarter. Buckingham Asset Management LLC raised its stake in Southwest Airlines by 0.3% in the first quarter. Buckingham Asset Management LLC now owns 5,690 shares of the airline’s stock worth $306,000 after buying an additional 16 shares during the last quarter. Bank of Hawaii raised its stake in Southwest Airlines by 0.3% in the first quarter. Bank of Hawaii now owns 12,867 shares of the airline’s stock worth $692,000 after buying an additional 35 shares during the last quarter. Finally, First Heartland Consultants Inc. raised its stake in Southwest Airlines by 0.3% in the first quarter. First Heartland Consultants Inc. now owns 16,293 shares of the airline’s stock worth $876,000 after buying an additional 43 shares during the last quarter. 79.69% of the stock is owned by institutional investors and hedge funds.
Southwest Airlines Company Profile
Southwest Airlines Co (Southwest) operates Southwest Airlines, a passenger airline that provides scheduled air transportation in the United States and near-international markets. The Company provides point-to-point service. The Company offers ancillary service offerings, such as Southwest’s EarlyBird Check-In and transportation of pets and unaccompanied minors, in accordance with Southwest’s respective policies.
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