Southwest Airlines (NYSE:LUV) Releases Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Key Points

• Southwest Airlines beat quarterly expectations: EPS came in at $0.66 versus the $0.57 consensus estimate, while revenue reached $8.42 billion compared with forecasts of $8.25 billion.
• The company maintained its quarterly dividend at $0.18 per share, equal to $0.72 annually and a 1.8% yield, with a 44.17% payout ratio.
• Analyst sentiment remains mixed: Southwest has an overall “Hold” rating and a consensus price target of $47.41, with nine Buy, nine Hold, and four Sell ratings.

Southwest Airlines (NYSE:LUV - Get Free Report) issued its quarterly earnings data on Wednesday. The airline reported $0.66 EPS for the quarter, topping the consensus estimate of $0.57 by $0.09, FiscalAI reports. The company had revenue of $8.42 billion during the quarter, compared to analyst estimates of $8.25 billion. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%.

Southwest Airlines Stock Performance

NYSE LUV traded up $0.20 on Wednesday, hitting $39.85. 9,034,763 shares of the company traded hands, compared to its average volume of 7,419,942. The company has a market capitalization of $19.50 billion, a price-to-earnings ratio of 24.45, a P/E/G ratio of 1.00 and a beta of 1.16. The company has a current ratio of 0.49, a quick ratio of 0.42 and a debt-to-equity ratio of 0.54. The business's 50 day moving average price is $40.78 and its 200-day moving average price is $42.85. Southwest Airlines has a 52-week low of $29.26 and a 52-week high of $55.11.

Southwest Airlines Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Investors of record on Thursday, September 3rd were issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend was Thursday, September 3rd. Southwest Airlines's dividend payout ratio (DPR) is currently 44.17%.

Analyst Ratings Changes

A number of research analysts have weighed in on LUV shares. Citigroup lowered their target price on Southwest Airlines from $55.00 to $50.00 and set a "neutral" rating on the stock in a report on Friday, July 24th. Zacks Research downgraded Southwest Airlines from a "hold" rating to a "strong sell" rating in a research note on Tuesday, October 6th. Evercore upped their price target on shares of Southwest Airlines from $44.00 to $52.00 in a research report on Thursday, June 25th. Wall Street Zen cut shares of Southwest Airlines from a "buy" rating to a "hold" rating in a research note on Saturday, September 5th. Finally, Morgan Stanley increased their price objective on shares of Southwest Airlines from $60.00 to $65.00 and gave the stock an "overweight" rating in a research note on Monday, July 6th. Nine research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $47.41.

Southwest Airlines Company Profile

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. The company provides scheduled air transportation for leisure and business travelers, with service connecting cities throughout the United States and selected destinations in Mexico, the Caribbean, and Central America.

Southwest is known for its predominantly domestic network and point-to-point operating model. In addition to passenger flights, the company offers ancillary services and air cargo transportation.

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