Zacks Research Issues Optimistic Outlook for LUV Earnings

Key Points

• Zacks Research raised its Q2 2027 EPS estimate for Southwest Airlines to $1.19 from $1.16, while maintaining a “Strong Sell” rating. Its Q3 2027 estimate is $1.11 per share.
• Southwest’s latest quarter beat expectations, with EPS of $0.66 versus $0.57 consensus and revenue of $8.42 billion versus $8.25 billion. Revenue rose 21.2% year over year.
• Analyst views remain mixed: the stock has an average “Hold” rating and a $48.20 consensus price target, with 11 Buy, eight Hold, and four Sell ratings.

Southwest Airlines Co. (NYSE:LUV - Free Report) - Research analysts at Zacks Research increased their Q2 2027 EPS estimates for Southwest Airlines in a report issued on Wednesday, November 4th. Zacks Research analyst Team now anticipates that the airline will earn $1.19 per share for the quarter, up from their prior estimate of $1.16. Zacks Research currently has a "Strong Sell" rating on the stock. The consensus estimate for Southwest Airlines' current full-year earnings is $2.77 per share. Zacks Research also issued estimates for Southwest Airlines' Q3 2027 earnings at $1.11 EPS.

Southwest Airlines (NYSE:LUV - Get Free Report) last posted its earnings results on Wednesday, October 21st. The airline reported $0.66 EPS for the quarter, beating the consensus estimate of $0.57 by $0.09. Southwest Airlines had a return on equity of 18.05% and a net margin of 3.34%. The firm had revenue of $8.42 billion during the quarter, compared to the consensus estimate of $8.25 billion. During the same period last year, the company earned $0.11 earnings per share. The business's quarterly revenue was up 21.2% on a year-over-year basis.

LUV has been the subject of a number of other research reports. Barclays dropped their price objective on shares of Southwest Airlines from $65.00 to $58.00 and set an "overweight" rating for the company in a report on Friday, September 11th. Rothschild & Co Redburn upgraded shares of Southwest Airlines from a "sell" rating to a "neutral" rating and lifted their target price for the stock from $35.00 to $40.00 in a research report on Friday, September 18th. JPMorgan Chase & Co. reduced their target price on shares of Southwest Airlines from $59.00 to $58.00 and set an "overweight" rating on the stock in a report on Friday, October 23rd. Wall Street Zen cut shares of Southwest Airlines from a "buy" rating to a "hold" rating in a research report on Saturday, September 5th. Finally, Tigress Financial started coverage on shares of Southwest Airlines in a research report on Friday, October 30th. They issued a "buy" rating and a $62.00 price target for the company. Eleven analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $48.20.

Southwest Airlines Stock Performance

NYSE:LUV opened at $46.45 on Thursday. The stock has a market cap of $22.74 billion, a P/E ratio of 22.33, a price-to-earnings-growth ratio of 0.63 and a beta of 1.23. The company has a current ratio of 0.47, a quick ratio of 0.40 and a debt-to-equity ratio of 0.51. The stock's 50-day moving average is $40.99 and its 200-day moving average is $43.52. Southwest Airlines has a 1-year low of $29.80 and a 1-year high of $55.11.

Institutional Investors Weigh In On Southwest Airlines

Institutional investors and hedge funds have recently made changes to their positions in the stock. Primecap Management Co. CA acquired a new stake in Southwest Airlines during the second quarter worth approximately $2,509,179,000. BlackRock Inc. bought a new stake in Southwest Airlines in the second quarter worth approximately $1,538,382,000. Bank of New York Mellon Corp bought a new stake in Southwest Airlines in the second quarter worth approximately $234,872,000. Dimensional Fund Advisors LP lifted its stake in Southwest Airlines by 2.1% in the first quarter. Dimensional Fund Advisors LP now owns 5,763,154 shares of the airline's stock valued at $216,472,000 after buying an additional 117,833 shares during the period. Finally, U S Global Investors Inc. lifted its stake in Southwest Airlines by 13.9% in the third quarter. U S Global Investors Inc. now owns 2,260,841 shares of the airline's stock valued at $94,141,000 after buying an additional 275,204 shares during the period. Institutional investors and hedge funds own 80.82% of the company's stock.

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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