Analysts Expect Southwest Airlines Co (NYSE:LUV) Will Post Earnings of $1.09 Per Share

Wall Street brokerages expect that Southwest Airlines Co (NYSE:LUV) will report earnings per share of $1.09 for the current fiscal quarter, according to Zacks. Nine analysts have issued estimates for Southwest Airlines’ earnings, with the lowest EPS estimate coming in at $1.02 and the highest estimate coming in at $1.12. Southwest Airlines posted earnings per share of $1.08 in the same quarter last year, which suggests a positive year over year growth rate of 0.9%. The firm is scheduled to report its next quarterly earnings report before the market opens on Thursday, October 24th.

According to Zacks, analysts expect that Southwest Airlines will report full year earnings of $4.27 per share for the current year, with EPS estimates ranging from $4.10 to $4.50. For the next year, analysts expect that the business will report earnings of $5.09 per share, with EPS estimates ranging from $4.74 to $5.31. Zacks’ earnings per share calculations are a mean average based on a survey of research analysts that follow Southwest Airlines.

Southwest Airlines (NYSE:LUV) last released its earnings results on Thursday, July 25th. The airline reported $1.37 earnings per share for the quarter, beating analysts’ consensus estimates of $1.35 by $0.02. Southwest Airlines had a net margin of 10.73% and a return on equity of 24.12%. The company had revenue of $5.91 billion for the quarter, compared to analysts’ expectations of $5.94 billion. During the same quarter in the previous year, the company earned $1.26 EPS. Southwest Airlines’s revenue for the quarter was up 2.9% on a year-over-year basis.

A number of brokerages have issued reports on LUV. Berenberg Bank began coverage on shares of Southwest Airlines in a report on Friday, September 6th. They issued a “hold” rating and a $57.00 price target on the stock. Cowen reissued a “market perform” rating and set a $57.00 price target (up from $55.00) on shares of Southwest Airlines in a report on Friday, July 26th. Bank of America raised shares of Southwest Airlines to a “buy” rating and set a $65.00 price target on the stock in a report on Monday, September 23rd. Morgan Stanley increased their price target on shares of Southwest Airlines from $60.00 to $63.00 and gave the stock an “overweight” rating in a report on Thursday. Finally, Tigress Financial reissued a “buy” rating on shares of Southwest Airlines in a report on Thursday, September 26th. Two research analysts have rated the stock with a sell rating, ten have given a hold rating and eight have assigned a buy rating to the company. Southwest Airlines presently has a consensus rating of “Hold” and an average price target of $57.95.

NYSE LUV traded up $0.65 on Friday, reaching $54.32. The company had a trading volume of 89,364 shares, compared to its average volume of 3,981,138. The company has a quick ratio of 0.59, a current ratio of 0.64 and a debt-to-equity ratio of 0.37. The stock has a market capitalization of $28.50 billion, a PE ratio of 12.79, a price-to-earnings-growth ratio of 1.39 and a beta of 1.48. The firm’s 50 day moving average price is $53.21 and its 200 day moving average price is $52.02. Southwest Airlines has a 12 month low of $44.28 and a 12 month high of $60.86.

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 11th. Shareholders of record on Wednesday, August 21st were issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 1.33%. The ex-dividend date of this dividend was Tuesday, August 20th. Southwest Airlines’s payout ratio is 16.98%.

A number of institutional investors and hedge funds have recently bought and sold shares of LUV. Global Wealth Management Investment Advisory Inc. increased its position in Southwest Airlines by 242.8% in the 2nd quarter. Global Wealth Management Investment Advisory Inc. now owns 713 shares of the airline’s stock worth $36,000 after buying an additional 505 shares during the period. American National Bank acquired a new stake in Southwest Airlines in the 3rd quarter valued at $54,000. Doyle Wealth Management acquired a new stake in Southwest Airlines in the 2nd quarter valued at $58,000. Clear Perspective Advisors LLC acquired a new stake in Southwest Airlines in the 2nd quarter valued at $60,000. Finally, NEXT Financial Group Inc boosted its stake in Southwest Airlines by 1,073.5% in the 2nd quarter. NEXT Financial Group Inc now owns 1,197 shares of the airline’s stock valued at $61,000 after buying an additional 1,095 shares in the last quarter. 82.01% of the stock is currently owned by institutional investors and hedge funds.

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, 2018, the company operated a total of 750 Boeing 737 aircraft; and served 99 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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Earnings History and Estimates for Southwest Airlines (NYSE:LUV)

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