Brokerages Anticipate Southwest Airlines Co (LUV) Will Announce Earnings of $1.06 Per Share

Equities analysts expect Southwest Airlines Co (NYSE:LUV) to announce earnings per share (EPS) of $1.06 for the current fiscal quarter, according to Zacks. Four analysts have provided estimates for Southwest Airlines’ earnings. The lowest EPS estimate is $0.98 and the highest is $1.12. Southwest Airlines reported earnings per share of $0.88 in the same quarter last year, which would indicate a positive year-over-year growth rate of 20.5%. The company is expected to announce its next earnings report before the market opens on Thursday, October 25th.

According to Zacks, analysts expect that Southwest Airlines will report full-year earnings of $4.17 per share for the current year, with EPS estimates ranging from $4.05 to $4.45. For the next fiscal year, analysts expect that the company will post earnings of $4.99 per share, with EPS estimates ranging from $4.61 to $5.46. Zacks’ earnings per share averages are an average based on a survey of analysts that cover Southwest Airlines.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings results on Thursday, July 26th. The airline reported $1.26 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.23 by $0.03. Southwest Airlines had a return on equity of 22.16% and a net margin of 16.90%. The business had revenue of $5.74 billion during the quarter, compared to analyst estimates of $5.75 billion. During the same quarter in the previous year, the company posted $1.24 earnings per share. Southwest Airlines’s revenue for the quarter was up .2% on a year-over-year basis.

Several analysts have issued reports on the company. ValuEngine raised Southwest Airlines from a “hold” rating to a “buy” rating in a report on Monday, September 17th. Macquarie raised Southwest Airlines to an “outperform” rating in a report on Tuesday, September 18th. Imperial Capital reissued an “outperform” rating and set a $66.00 price target (up previously from $60.00) on shares of Southwest Airlines in a report on Thursday, September 27th. Zacks Investment Research lowered Southwest Airlines from a “buy” rating to a “hold” rating in a report on Thursday, October 4th. Finally, Buckingham Research upped their price objective on Southwest Airlines from $69.00 to $73.00 and gave the stock a “buy” rating in a research note on Friday, September 7th. Five investment analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company’s stock. The stock has an average rating of “Buy” and a consensus price target of $69.30.

In related news, EVP Andrew M. Watterson sold 6,130 shares of the business’s stock in a transaction dated Friday, August 17th. The stock was sold at an average price of $59.28, for a total value of $363,386.40. Following the sale, the executive vice president now directly owns 16,597 shares in the company, valued at $983,870.16. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, SVP Mark R. Shaw sold 4,910 shares of the business’s stock in a transaction dated Monday, July 30th. The stock was sold at an average price of $58.35, for a total value of $286,498.50. Following the completion of the sale, the senior vice president now owns 11,546 shares in the company, valued at $673,709.10. The disclosure for this sale can be found here. In the last ninety days, insiders sold 11,470 shares of company stock valued at $674,941. Corporate insiders own 0.23% of the company’s stock.

Large investors have recently bought and sold shares of the stock. Koch Industries Inc. purchased a new stake in shares of Southwest Airlines in the first quarter worth about $431,000. Salem Investment Counselors Inc. lifted its position in shares of Southwest Airlines by 3,172.6% in the second quarter. Salem Investment Counselors Inc. now owns 22,843 shares of the airline’s stock worth $1,162,000 after buying an additional 22,145 shares in the last quarter. Wills Financial Group Inc. purchased a new stake in shares of Southwest Airlines in the second quarter worth about $1,222,000. Independent Advisor Alliance purchased a new stake in shares of Southwest Airlines in the second quarter worth about $366,000. Finally, Cambridge Investment Research Advisors Inc. raised its position in Southwest Airlines by 5.5% during the second quarter. Cambridge Investment Research Advisors Inc. now owns 68,870 shares of the airline’s stock valued at $3,504,000 after purchasing an additional 3,593 shares during the period. Institutional investors own 77.99% of the company’s stock.

NYSE:LUV traded up $0.35 during mid-day trading on Friday, hitting $57.38. 4,011,789 shares of the company traded hands, compared to its average volume of 5,158,625. Southwest Airlines has a one year low of $49.93 and a one year high of $66.99. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.64 and a current ratio of 0.70. The firm has a market capitalization of $35.79 billion, a PE ratio of 16.39, a P/E/G ratio of 1.24 and a beta of 1.06.

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, and Turks and Caicos.

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