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Southwest Airlines Co. (LUV), headquartered in Dallas, Texas, is a major U.S. airline known for its low-cost business model and exceptional customer service, with a market cap of $18.32 billion. The company offers various travel solutions prioritizing affordability and convenience for leisure and business travelers. Southwest is set to release its Q3 earnings report before the market opens on Thursday, Oct. 24.
Ahead of the event, analysts expect LUV to report a profit of $0.04 per share, down 89.5% from $0.38 in the year-ago quarter. The company has surpassed or matched Wall Street's earnings estimates in three of the last four quarters while missing on another occasion.
Its adjusted earnings of $0.58 per share for the last quarter surpassed the consensus estimate by 16%. Southwest's earnings beat was driven by modest revenue growth.
For fiscal 2024, analysts expect LUV to report EPS of $0.54, down 65.6% from $1.57 in fiscal 2023.
LUV stock is up 6% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 21.9% gains and the U.S. Global Jets ETF’s (JETS) 10.7% returns over the same time frame.
Southwest Airlines stock climbed more than 5% after raising its Q3 revenue-per-capacity guidance and announcing a new $2.5 billion stock buyback program. On Jul. 25, Southwest Airlines reported its Q2 results. The company’s revenue of $7.35 billion surpassed the Wall Street forecasts of $7.32 billion. LUV shares gained more than 5% when the results were released.
The consensus opinion on LUV stock is cautious, with an overall “Hold” rating. Of 17 analysts covering the stock, four advise a “Strong Buy” rating, one suggests a “Moderate Buy,” nine indicate a “Hold,” and three advise “Strong Sell.”
LUV's average analyst price target is $29.18, which indicates that the stock trades at a premium.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
