Zacks: Brokerages Expect Southwest Airlines Co (LUV) Will Post Quarterly Sales of $5.77 Billion

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Wall Street brokerages forecast that Southwest Airlines Co (NYSE:LUV) will post $5.77 billion in sales for the current fiscal quarter, Zacks Investment Research reports. Four analysts have provided estimates for Southwest Airlines’ earnings, with estimates ranging from $5.75 billion to $5.83 billion. Southwest Airlines reported sales of $5.74 billion during the same quarter last year, which indicates a positive year-over-year growth rate of 0.5%. The company is expected to issue its next earnings report on Thursday, July 26th.

On average, analysts expect that Southwest Airlines will report full-year sales of $22.07 billion for the current financial year, with estimates ranging from $21.94 billion to $22.21 billion. For the next year, analysts expect that the firm will report sales of $23.56 billion per share, with estimates ranging from $23.24 billion to $23.93 billion. Zacks’ sales averages are an average based on a survey of research firms that follow Southwest Airlines.

Southwest Airlines (NYSE:LUV) last issued its earnings results on Thursday, April 26th. The airline reported $0.75 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.74 by $0.01. Southwest Airlines had a net margin of 16.95% and a return on equity of 23.25%. The firm had revenue of $4.94 billion for the quarter, compared to analysts’ expectations of $5 billion. During the same quarter last year, the company posted $0.61 earnings per share. Southwest Airlines’s revenue was up 1.9% on a year-over-year basis.

A number of research firms have recently weighed in on LUV. Argus cut Southwest Airlines from a “buy” rating to a “hold” rating and cut their price target for the company from $66.99 to $49.76 in a report on Friday, June 15th. Buckingham Research cut their price target on Southwest Airlines from $68.00 to $66.00 and set a “buy” rating on the stock in a report on Wednesday, June 13th. Edward Jones raised Southwest Airlines from a “hold” rating to a “buy” rating in a report on Tuesday, June 12th. Deutsche Bank cut their price target on Southwest Airlines from $71.00 to $66.00 and set a “buy” rating on the stock in a report on Monday, June 11th. Finally, Cowen cut their price target on Southwest Airlines from $65.00 to $63.00 and set an “outperform” rating on the stock in a report on Monday, June 4th. Three equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and seventeen have assigned a buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average price target of $67.04.

NYSE LUV traded up $0.18 during trading hours on Tuesday, reaching $50.88. The company’s stock had a trading volume of 4,228,319 shares, compared to its average volume of 6,543,955. The stock has a market capitalization of $29.50 billion, a P/E ratio of 14.54, a P/E/G ratio of 0.94 and a beta of 1.14. The company has a quick ratio of 0.61, a current ratio of 0.67 and a debt-to-equity ratio of 0.50. Southwest Airlines has a 52 week low of $49.76 and a 52 week high of $66.99.

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 27th. Investors of record on Wednesday, June 6th were issued a dividend of $0.16 per share. This is a boost from Southwest Airlines’s previous quarterly dividend of $0.13. The ex-dividend date of this dividend was Tuesday, June 5th. This represents a $0.64 annualized dividend and a yield of 1.26%. Southwest Airlines’s payout ratio is presently 18.29%.

A number of large investors have recently made changes to their positions in LUV. Pinebridge Investments L.P. raised its holdings in Southwest Airlines by 22.0% during the fourth quarter. Pinebridge Investments L.P. now owns 9,908 shares of the airline’s stock worth $648,000 after purchasing an additional 1,789 shares in the last quarter. Virtu Financial LLC grew its position in Southwest Airlines by 151.8% in the fourth quarter. Virtu Financial LLC now owns 9,543 shares of the airline’s stock worth $625,000 after buying an additional 5,753 shares during the last quarter. OppenheimerFunds Inc. grew its position in Southwest Airlines by 37.7% in the fourth quarter. OppenheimerFunds Inc. now owns 425,555 shares of the airline’s stock worth $27,852,000 after buying an additional 116,561 shares during the last quarter. Fuller & Thaler Asset Management Inc. grew its position in Southwest Airlines by 6.0% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 120,389 shares of the airline’s stock worth $7,879,000 after buying an additional 6,819 shares during the last quarter. Finally, Carillon Tower Advisers Inc. acquired a new position in Southwest Airlines in the fourth quarter worth approximately $27,347,000. 79.56% of the stock is currently owned by hedge funds and other institutional investors.

Southwest Airlines Company Profile

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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