Wall Street analysts forecast that Southwest Airlines (LUV) will report quarterly earnings of $0.45 per share in its upcoming release, pointing to a year-over-year increase of 446.2%. It is anticipated that revenues will amount to $7.22 billion, exhibiting an increase of 12.3% compared to the year-ago quarter.
The current level reflects a downward revision of 60.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
In light of this perspective, let's dive into the average estimates of certain Southwest metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts forecast 'Operating Revenues- Passenger [$M]' to reach $6.56 billion. The estimate indicates a year-over-year change of +12.9%.
Analysts expect 'Operating Revenues- Other' to come in at $658.24 million. The estimate points to a change of +14.3% from the year-ago quarter.
The average prediction of analysts places 'Operating Revenues- Freight [$M]' at $47.26 million. The estimate points to a change of +15.3% from the year-ago quarter.
It is projected by analysts that the 'Load factor' will reach 77.9%. The estimate is in contrast to the year-ago figure of 73.9%.
Analysts' assessment points toward 'Revenue passenger miles (RPMs)' reaching 32.79 billion. Compared to the present estimate, the company reported 30.63 billion in the same quarter last year.
According to the collective judgment of analysts, 'Available seat miles (ASMs)' should come in at 42.00 billion. Compared to the current estimate, the company reported 41.43 billion in the same quarter of the previous year.
Analysts predict that the 'Passenger revenue per ASM (PRASM)' will reach N/A. The estimate compares to the year-ago value of N/A.
The consensus estimate for 'CASM, excluding Fuel and oil expense, special items, and profit sharing expense' stands at N/A. The estimate compares to the year-ago value of N/A.
The combined assessment of analysts suggests that 'Revenue Per Available Seat Mile (RASM)' will likely reach N/A. Compared to the present estimate, the company reported N/A in the same quarter last year.
The consensus among analysts is that 'Fuel consumed' will reach 511 millions of gallons. Compared to the current estimate, the company reported 500 millions of gallons in the same quarter of the previous year.
Based on the collective assessment of analysts, 'CASM, excluding Fuel and oil expense and special items' should arrive at N/A. Compared to the current estimate, the company reported N/A in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'CASM, excluding special items' of N/A. Compared to the present estimate, the company reported N/A in the same quarter last year.
View all Key Company Metrics for Southwest here>>>Over the past month, shares of Southwest have returned -0.6% versus the Zacks S&P 500 composite's +5.2% change. Currently, LUV carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
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