Southwest Airlines Co (LUV) Expected to Post Earnings of $1.36 Per Share

Equities analysts expect that Southwest Airlines Co (NYSE:LUV) will post $1.36 earnings per share (EPS) for the current quarter, according to Zacks Investment Research. Five analysts have issued estimates for Southwest Airlines’ earnings. The lowest EPS estimate is $1.29 and the highest is $1.44. Southwest Airlines posted earnings per share of $1.24 during the same quarter last year, which suggests a positive year over year growth rate of 9.7%. The business is expected to report its next quarterly earnings report on Thursday, July 26th.

On average, analysts expect that Southwest Airlines will report full-year earnings of $4.54 per share for the current financial year, with EPS estimates ranging from $4.35 to $4.90. For the next year, analysts forecast that the company will report earnings of $5.30 per share, with EPS estimates ranging from $5.10 to $5.60. Zacks Investment Research’s EPS averages are an average based on a survey of analysts that that provide coverage for Southwest Airlines.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings data on Thursday, April 26th. The airline reported $0.75 earnings per share for the quarter, beating analysts’ consensus estimates of $0.74 by $0.01. The business had revenue of $4.94 billion during the quarter, compared to analyst estimates of $5 billion. Southwest Airlines had a net margin of 16.95% and a return on equity of 23.25%. Southwest Airlines’s revenue was up 1.9% compared to the same quarter last year. During the same period last year, the business earned $0.61 EPS.



Several equities analysts have weighed in on the stock. JPMorgan Chase & Co. downgraded shares of Southwest Airlines from an “overweight” rating to a “neutral” rating and set a $70.00 target price on the stock. in a report on Tuesday, January 30th. Zacks Investment Research raised shares of Southwest Airlines from a “hold” rating to a “buy” rating and set a $68.00 target price on the stock in a report on Tuesday, January 30th. Vetr raised shares of Southwest Airlines from a “buy” rating to a “strong-buy” rating and set a $65.42 target price on the stock in a report on Monday, February 5th. UBS lowered their target price on shares of Southwest Airlines from $75.00 to $70.00 and set a “buy” rating on the stock in a report on Thursday, March 22nd. Finally, Buckingham Research raised shares of Southwest Airlines from a “neutral” rating to a “buy” rating and set a $106.00 target price on the stock in a report on Thursday, March 22nd. They noted that the move was a valuation call. Three equities research analysts have rated the stock with a sell rating, three have given a hold rating and seventeen have assigned a buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus target price of $68.55.

Southwest Airlines traded up $1.65, hitting $52.86, during trading hours on Monday, according to MarketBeat Ratings. 9,292,247 shares of the company’s stock traded hands, compared to its average volume of 6,154,399. The company has a current ratio of 0.67, a quick ratio of 0.61 and a debt-to-equity ratio of 0.50. The firm has a market capitalization of $29.69 billion, a price-to-earnings ratio of 15.10, a price-to-earnings-growth ratio of 0.85 and a beta of 1.16. Southwest Airlines has a 52 week low of $49.76 and a 52 week high of $66.99.

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 27th. Investors of record on Wednesday, June 6th will be paid a $0.16 dividend. The ex-dividend date is Tuesday, June 5th. This is a positive change from Southwest Airlines’s previous quarterly dividend of $0.13. This represents a $0.64 dividend on an annualized basis and a yield of 1.21%. Southwest Airlines’s dividend payout ratio is 14.29%.

In other Southwest Airlines news, COO De Ven Michael G. Van sold 31,099 shares of the stock in a transaction dated Friday, March 2nd. The shares were sold at an average price of $57.35, for a total transaction of $1,783,527.65. Following the completion of the sale, the chief operating officer now directly owns 172,883 shares of the company’s stock, valued at $9,914,840.05. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Gregory D. Wells sold 8,323 shares of the stock in a transaction dated Tuesday, February 27th. The shares were sold at an average price of $58.88, for a total transaction of $490,058.24. Following the sale, the executive vice president now directly owns 30,262 shares of the company’s stock, valued at $1,781,826.56. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 49,422 shares of company stock valued at $2,874,086. 0.23% of the stock is owned by insiders.

Several institutional investors have recently made changes to their positions in the stock. Suntrust Banks Inc. raised its position in shares of Southwest Airlines by 24.2% in the 1st quarter. Suntrust Banks Inc. now owns 41,192 shares of the airline’s stock valued at $2,358,000 after purchasing an additional 8,034 shares during the last quarter. Amalgamated Bank raised its position in shares of Southwest Airlines by 10.8% in the 1st quarter. Amalgamated Bank now owns 80,632 shares of the airline’s stock valued at $4,619,000 after purchasing an additional 7,882 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC raised its position in shares of Southwest Airlines by 5.4% in the 1st quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 2,272,644 shares of the airline’s stock valued at $130,177,000 after purchasing an additional 115,775 shares during the last quarter. Private Capital Group LLC raised its position in shares of Southwest Airlines by 819.2% in the 1st quarter. Private Capital Group LLC now owns 1,866 shares of the airline’s stock valued at $107,000 after purchasing an additional 1,663 shares during the last quarter. Finally, Banco de Sabadell S.A raised its position in shares of Southwest Airlines by 497.6% in the 1st quarter. Banco de Sabadell S.A now owns 16,297 shares of the airline’s stock valued at $926,000 after purchasing an additional 13,570 shares during the last quarter. 80.23% of the stock is owned by hedge funds and other institutional investors.

About Southwest Airlines

Southwest Airlines Co operates a passenger airline that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2017, the company operated a total of 706 Boeing 737 aircraft; and served 100 destinations in 40 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as 10 near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, Turks, and Chaos.

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Earnings History and Estimates for Southwest Airlines (NYSE:LUV)

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